MOHD ALI KHAN 2 SARSWATI STORES Vs. CIT

JUDGEMENT

(1.) IN both the applications the petitioners have challenged the orders rejecting their declaration under the Kar Vivad Samadhan Scheme, 1998 (hereinafter referred to as "the Scheme"), and as such they have been heard together and are being disposed of by this common order.

(2.) IN C.W.J.C. No. 3317 of 1999(R), the petitioner has challenged the order dated 25 -2 -1999, passed by the Commissioner of Income Tax, Ranchi, Camp -Jamshedpur (respondent No. 1), rejecting the declaration under the scheme on the ground that the petition filed before the Income Tax Appellate Tribunal under section 254(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), cannot be considered as a pendency of appeal in terms of clause 95(i)(c) of the scheme.

(3.) THE petitioner has filed a rejoinder to the counter -affidavit reiterating the very same fact which has been asserted in the writ application. The scheme was introduced by the Finance (No. 2) Act, 1998, and the same is contained in Chapter IV of the Finance Act and consists of sections 86 to 98 (both inclusive) as also a schedule. The scheme has been introduced by the government for settling the tax arrears which remained unpaid due to litigation. In substance, the scheme is a recovery scheme and the object of the scheme was explained by the Finance Minister in his speech while introducing the same. The relevant speech is as follows :