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2017 (8) TMI 750 - HC - Income TaxDirect Tax Dispute Resolution Scheme, 2016 - scope of the term "tax arrear" - CIT was of the opinion that since the additions made for the assessment year 2007-2008 were having bearing on the materials impounded during search in case of Baldevbhai Bhikhabhai Patel, the application for being covered under the Scheme was not maintainable - Penalty u/s 271(1)(c) - Held that:- The term “tax arrear” for the purpose of the said Scheme therefore, had a definite meaning as provided in the said definition. It would include the amount of tax, interest or penalty and would be treated as a tax arrear if against such determination, appeal is pending before the appellate Commissioner on the specified date. The expression used “if it relates to any tax arrear” in subclause( ii) of clause(a) of section 208 therefore, would include penalty also. In view of such clear definition, we are unable to accept the contention of Shri Soparkar that for the limited purpose of subclause( ii), the term “tax arrear” must exclude the penalty. Reference to any tax arrear is not limited to an order of assessment or reassessment but could also be in relation to an assessment or reassessment, clearly indicating the legislative intent not to confine the term “tax arrear” in the said clause to the simplicitor tax exclusive of interest or penalty, contrary to the plain language used in the definition section. The second contention that sub-clause( ii) would not include a situation as in case of the present assessee where he himself was not subjected to survey operation, also cannot be accepted. The language used is “has a bearing if it relates to any tax arrear” and not “if it relates to any tax arrear” or some similar expression. The term “has a bearing” is much wider and must be understood in its plain grammatical meaning as to include assessment or reassessment of which a survey conducted under section 133A of the Act has a bearing. As noted, the very genesis of the reassessment proceedings in case of the petitioner assessee was the documents found and seized during the survey operation. This condition is also therefore, satisfied in the present case. We do not therefore, find any error in view of the Commissioner in rejecting the petitioner's declaration.
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