GOPALDAS Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition, the petitioner is claiming quashment of documents Annexs. P/9 and P/11 whereby the application of the petitioner under Kar Vivad Samadhan Scheme, 1998 (for brevity, referred as 'kvss') was rejected for the asst. yr. 1993-94 by the respondent No. 2 on the ground that he did not deposit the required tax due on the basis of modified certificate issued under s. 90 (1) of KVSS. He deposited the tax on 6th July, 1999 much after 30 days and by order Annex. P/11 passed by respondent No. 2, the respondent No. 2 rejected the representation Annex. P/10, dt. 31st Jan. , 2000 submitted by the petitioner to respondent No. 2 for acceptance of application/declaration, since the tax was deposited within 30 days from the modified order/certificate (Annex. P/6) dt. 7th June, 1999 by respondent No. 2.

(2.) THE factual matrix in short for deciding the dispute between the parties is that the petitioner is carrying on the business in the name and style of "poonam Oil Industries" in Indore town. The respondent No. 1 introduced Finance Bill, No. 2 of 1998, regarding settlement of income-tax dispute called as KVSS. The petitioner, as per the provisions of KVSS, submitted declaration prior to the stipulated date, i. e. , on or before 30th Dec, 1998 in respect of asst. yrs. 1988-89, 1989-90, 1990-91, 1991-92, 1992-93, 1993-94 and 1994-95 relating to his income-tax matters. The respondent No. 1 issued a certificate as per provision under s. 90 (1) of KVSS, dt. 26th Feb. , 1999 vide Annex. P/3. This consolidated certificate was issued for seven assessment years and the petitioner was directed to deposit the tax within 30 days from the date of this certificate.

(3.) AFTER receiving the certificate (Annex. P/3) the petitioner submitted representation Annex. P/4, dt. 11th March, 1999 received by the Department on 12th March, 1999. According to him, as per s. 88 of the KVSS, rate of tax for an individual assessee was 30 per cent and the assessments were completed under s. 143 (3) of the IT Act (for brevity hereinafter called as 'the Act'), for all the seven assessment years and search was conducted on 7th Jan. , 1995. Therefore, the search order was for the asst. yr. 1995-96. According to s. 88b of KVSS, the petitioner being a person other than a company or the firm would be required to pay tax @ 40 per cent of the disputed income for the asst. yr. 1995-96 in which the search was taken.