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2014 (9) TMI 886 - HC - Income TaxInterpretation of Karvivad Samadhan Scheme - Levy of 35% amount on the component of interest and penalty – Tax in arrears - Whether the transaction fits into Clause (a)(iii), or Clause (a)(iv) of Section 88 of the Act – Held that:- An analysis of Clauses (a)(iii) and (a)(iv) of Section 88 of the Act would present some extraordinary features - A person, who is in arrears of tax, is exposed to higher obligation, whereas the one, who is in arrears of tax, interest and penalty, is relieved of a substantial obligation - That, however was the intention of the Parliament and the Courts or for that matter, the respondents cannot look into the reasons - The clarification issued by the Board, in a way adds some more dimensions and angles to the Scheme - the Board can neither expand nor restrict the scope of the Act, but can only issue instructions and clarifications, for effective implementation - the view expressed by the authorities under the Act, vis-a-vis the claim of the petitioner that benefit under the Scheme cannot be sustained in law – the assessee has already paid the amount in accordance with Clause (a)(iii) of Section 88 of the Act, it is declared that he is not in arrears of any tax nor he is under obligation to pay any further amount, with reference to the assessment year 1996-97 – Decided in favour of assessee.
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