HASMUKHLAL THAKORDAS DALWALA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Since both these petitions under Article 226 of the Constitution of India raise identical questions, upon request, they are being adjudicated upon, simultaneously. The sole question which has come to the surface in this two petitions is the impugned action of the Commissioner of Income-tax, Surat, in directing the petitioners to withdraw the applications pending before the Settlement Commissioner as a condition precedent for availing the benefits of Kar Vivad Samadhan Scheme 1998 (KVS Scheme). In order to examine and appreciate this question, we would like to highlight a few skeleton factual aspects leading to the rise of this group of two petitions under Article 226 of the Constitution of India.

(2.) The petitioners are income-tax assessees. The income tax assessment years involved are 1987-88, 1988-89 and 1989-90. Respondent No.1, Commissioner of Income-tax, Surat, before whom the petitioners are entitled to present declaration under KVS Scheme, made declarations by both the petitioners. However, respondent No.1 took the view that the applications of the assessees against the assessments for the aforesaid assessment years are admitted under section 245D(1) of the Income-tax Act, 1961, and since no order has been passed under sub-section (4) thereof, the petitioner would be entitled to the benefit of KVS scheme, only, upon the withdrawal of the applications pending, before the Settlement Commission.

(3.) As a sequel to that, the petitioners sought the withdrawal of the applications from respondent No.2, Settlement Commission. However, respondent No.2, Settlement Commission did not permit the petitioners to withdraw the settlement applications, as a result of which, the declarations submitted by the petitioners for availing the benefit of KVS-Scheme, could not be processed further by the respondent No.1. That is how the petitioners have come up before this Court by filing two writ petitions invoking the aids of the provisions of Article 226 of the Constitution of India.