COVERAGE AND CONSULTANTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BY filing this writ under Articles 226 and 227 of the Constitution of India, the petitioner--an assessee under the Income-tax Act--seeks a writ of mandamus for acceptance of his figure of tax payable under the Kar Vivad Samadhan Scheme, 1998 (for short "the KVSS"). The facts of the case lie in a narrow compass.

(2.) CONSEQUENT upon the introduction of the Kar Vivad Samadhan Scheme, the petitioner made an application (annexure A) to the designated authority (Commissioner of Income-tax, Indore) in the prescribed Form No. 1A. According to the petitioner, they were only liable to pay a total tax outstanding to the tune of Rs. 4,66,324. In other words, the petitioner's case was that out of the total liability of tax due from the petitioner of Rs. 1,31,46,459 out of which they have already paid a sum of Rs. 1,26,04,352. On this basis, the petitioner offered to pay a balance sum of Rs. 4,66,324 and settled the matter by filing the application under the Kar Vivad Samadhan Scheme, i.e., annexure A.

(3.) HAVING heard learned counsel for the parties and having perused the entire record of the case, I am inclined to remand the case to the Commissioner of Income-tax, Indore, being the designated authority under the Kar Vivad Samadhan Scheme to decide as to how much tax, the petitioner has to deposit or is liable to deposit under the Kar Vivad Samadhan Scheme. In my opinion, when it was the case of the petitioner that they have to pay a total sum of Rs. 4,66,324 but the Department was not prepared to accept this figure of the petitioner, it was necessary for the Department to have at least justified as to how and on what basis, the Department has worked out the figure of Rs. 29,65,513. The petitioner (assessee) is entitled to know and challenge the Department if it is arbitrary or has no rational basis or if it is not according to the mode provided in the Kar Vivad Samadhan Scheme. This court, cannot embark upon this inquiry to work out and determine the actual tax liability that is payable by the petitioner. It has to be worked out on the basis of cases pending in various courts, Tribunals.