HARSHVARDHAN CHEMICAL MI Vs. U O I

JUDGEMENT

(1.) THE issue deserves determination in this petition for writ is regarding eligibility of the petitioner to have benefit/appropriate certificate in terms of Kar Vivad Samadhan Scheme, 1998 (hereinafter referred to as KVSS), that came into force on 1.9.1998. THE scheme aforesaid was attempted to overcome huge pendency of disputes pending adjudication before various legal foras by foregoing part of demand by revenue, if a tax payer is prepared to give up his dispute and agrees to pay the arrears at reduced rate.

(2.) THE factual matrix necessary to be noticed for adjudication of instant petition for writ is that the petitioner, a company duly incorporated under the provisions of Companies Act, 1956 made a declaration for the assessment year 1990-91 on 28.1.1999, to avail the benefit of KVSS. A certificate of intimation then was issued by the Commissioner of Income Tax, Jaipur with determination of tax payable at Rs.7,09,431/- by the petitioner company towards full and final settlement of tax arrears. However, by a letter dated 16.4.1999, the respondents refused to issue final certificate under Section 90(2) of the Finance Act, 1998 (hereinafter referred as the Act of 1998) on the count that no reference before the High Court on the date of filing of declaration was pending. To assail validity of the decision conveyed under the letter dated 16.4.1999, this petition for writ is preferred.

(3.) IN Dr. Mrs. Renuka Datla's case (supra) a regular appeal was preferred by the assessee and that was pending consideration, but the designated authority rejected the declaration with an assessment that the said appeal has become infructuous being relating to levy interest which was already waived. Honourable Apex Court in such circumstances held that the designated authority would not have determined the possible out come of the case, but to see the fact only regarding pendency of the dispute.