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2020 (6) TMI 642 - HC - Income TaxBenefit of Kar Vivad Samadhan Scheme - amount of penalty and interest payable by the petitioner under Section 220(2) read with Sections 271(1)(a), 271(1)(b) and 271(1)(c) was computed @ 50% as due and payable by the petitioner under the KVSS - HELD THAT:- Since the liability of the petitioner for the assessment year 1987-88 against the tax demand of ₹ 3,11,206.00 being crystallized, the petitioner was called upon to pay interest and penalty @ 50% as determined at ₹ 6,16,838.00 over and above the aforesaid tax liability of ₹ 3,11,206.00 for the assessment year 1987-88 (which was appropriated by the Income Tax Department). However, if the said tax demand was appropriated and adjusted (as it was received in October 1991), then the petitioner cannot be burdened with payment of penalty and interest in the year 1999, merely because the interim order in WP 2490/1991 did not give such directions for adjustment and appropriation. In any event, since October 1991, the Income Tax Department was in receipt of ₹ 6,00,000.00 from the petitioner. ORDER: The Certificate of Intimation dated 26.02.1999 which confers liability on the petitioner towards payment of penalty and interest under the Act for the assessment year 1987-88 is set aside. The respondents / Revenue are directed to compute and intimate to the petitioner within a period of 8 weeks any outstanding penalty and interest, if payable, by the petitioner for the assessment year 1987-88 until the date of deposit (i.e. October 1991) by the petitioner of the amount of ₹ 6,00,000.00 with the Revenue. If the petitioner is liable to pay any penalty and interest, the same shall be adjusted from the balance amount of ₹ 6,00,000.00, if any, held by the Revenue. If the Revenue holds any further balance amount after adjusting the above penalty and interest, if any, the same shall be adjusted towards the outstanding liability for assessment year 1985-86. Rule is discharged.
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