A RAMAMURTHY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS appeal is directed against the order of the learned Single Judge passed in W.P.No.14024 of 2004, dated 24.8.2006.

(2.) THE writ petition was filed stating that the petitioner/appellant, who is an income tax assessee, availed the scheme called "Kar Vivad Samadhan Scheme" for the Assessment Year 1985 -86. Pursuant to the same, he paid the amount determined as tax arrears and obtained a certificate to that effect. Later the authorities have reopened the assessment for the Assessment Year 1985 -86 and directed the petitioner to pay a sum of Rs.4,98,187/ - as per the order of the respondent, dated 03.2.2004. The said writ petition was filed seeking to quash the said order, dated 03.2.2004 and to consequently direct the respondent to drop the proceedings under section 155 of the Income Tax Act.

(3.) THE learned counsel appearing for the appellant contended that by virtue of Clause 90 (3) and Clause 92 of the Finance (No.2) Act, 1998, under which the Kar vivad Samadhan Scheme was introduced, any issue in respect of which a declarant has opted for scheme shall not be reopened in any other proceedings under the Direct Tax enactment. He further contended that the Assessing Officer has no power or jurisdiction under Section 155 of the Income Tax Act, 1961 to reopen the assessment.