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2018 (2) TMI 1596 - HC - Income TaxDeclaration under the Kar Vivad Scheme - petitioner paid the tax at 40% on the disputed income and sought complete waiver of interest in terms of the Kar Vivad Scheme - Held that:- We find that there is nothing on record to indicate that the tax arrears of ₹ 87/have been adjusted with the tax refund of ₹ 10,800/for the Assessment Year 1997-98. Petitioner has, on instructions, stated before us that till date the petitioner has not received any order passed under Section 245 of the Act by the authorities under the Act adjusting the tax arrears of ₹ 87/payable for Assessment Year 198485 with the refund of ₹ 10,800/. For the first time, we find that in the affidavit dated 22nd July, 1999 of the respondent no.1 such a claim has been made. Moreover, it merely states that the tax arrears of ₹ 87/has been adjusted against the refund of ₹ 10,800/due to the petitioner. However, it is completely silent as to the date when this adjustment took place nor has the affidavitinreply annexed to it the order passed under Section 245 of the Act which made the adjustment. In view of the affidavit being silent on the date on which the adjustment was done, an adverse inference must be drawn that the adjustment, if any, had not taken place before filing of the declaration on 22nd December, 1998. Thus, on the date when the declaration was filed on 22nd December, 1998 tax arrears of ₹ 87/was payable by the petitioner to the Revenue and 40% of the disputed tax amount which would be ₹ 52/which would be payable under the Scheme. Thus, if the amount of ₹ 52/is paid, it would resulted in a complete waiver of the interest payable by the petitioner. Thus the collection of amounts on account of interest consequent to the Certificate dated 19th February, 1999 is outside the Kar Vivad Scheme and retention thereof by the State is without authority of law. Thus it would be appropriate to direct the respondent no.1 to modify / amend its Certificate dated 19th February, 1999 under Kar Vivad Scheme and grant a complete waiver of interest payable under the Act in view of there being tax arrears on disputed income as on the date of filing of the declaration. The petition is allowed in terms of prayer clause (b1). The respondent no.1 is directed to amend the Certificate dated 19th February, 1999 issued under Section 90(1) of the Kar Vivad Scheme to grant complete waiver on payment of interest.
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