NAMRITA CHOUDHARY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal filed by the appellant under section 2(1) of the MP Uchcha Nyayalaya (Khand Nyaypeeth Ko Appeal) Adhiniyam, 2005, calling in question tenability of an order-dated 4.7.2006, passed in Writ Petition No. 1032/1999.

(2.) Facts in brief go to show that for the Assessment Years in question i.e for the years 1994-95 and 1995-96, appellant had submitted a settlement claim and declaration under the Kar Vivad Samadhan Scheme 1998, promulgated by the Finance Act No.2, 1998. Appellant made a declaration for settlement of tax payable under section 88 of the Scheme. The declaration was made in respect of arrears of tax, which was disputed. Be it as it may be, when the assessment proceedings on the basis of the settlement and declaration made by the appellant was undertaken, the Assessing Officer added certain additional tax to the declaration made by the appellant and the appellant challenged this additional addition of tax by way of additional tax under section 143(1)(a), by saying that in a settlement scheme undertaken under the Kar Vivad Samadhan Scheme 1998, additional tax could not be levied.

(3.) The writ Court took note of the aforesaid objection, considered the provision of section 87 of the Scheme; meaning of the word 'tax arrears'; and, the explanation given by the Central Board of Direct Taxes and held that 'additional tax' is also part of the tax as payable and imposed under section 147 and, therefore, no error has been committed by the Revenue in adding the additional tax while assessing the income of the appellant for the years in question, under the Kar Vivad Samadhan Scheme 1998. The prayer of the appellant/petitioner having been rejected by the writ Court, this appeal has been filed.