TMI Blog2015 (8) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... ro Graphites Ltd. (2000 (3) TMI 2 - SUPREME Court ) wherein held that the levy of "additional tax" bears all the characteristics of a penalty. It is held that when "additional tax" has the imprint of penalty, the Revenue cannot say that levy of "additional tax" is automatic under section 143(1)(a) of the Income-tax Act. The Supreme Court says that if "additional tax" could be levied in the manner as claimed by the Revenue, it will amount to punishing the assessee for no fault of his and this cannot be the legislative intent. Finally, it is held by the Supreme Court in the aforesaid case that "additional tax" being in the nature of penalty, it cannot be levied in the manner done and has quashed similar action taken of adding "additional tax" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings on the basis of the settlement and declaration made by the appellant was undertaken, the Assessing Officer added certain additional tax to the declaration made by the appellant and the appellant challenged this additional addition of tax by way of additional tax under section 143(1)(a), by saying that in a settlement scheme undertaken under the Kar Vivad Samadhan Scheme, 1998, additional tax could not be levied. 3. The writ court took note of the aforesaid objection, considered the provision of section 87 of the Scheme ; meaning of the word tax arrears ; and, the explanation given by the Central Board of Direct Taxes and held that additional tax is also part of the tax as payable and imposed under section 147 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance on a judgment of the Karnataka High Court in the case of Bidar Sahakari Sakkare Kharkane Niyamat v. Union of India [1999] 237 ITR 445 (Karn), to say that additional tax is only a tax and is not a penal provision as canvassed by Shri Mukesh Agrawal. 7. We have heard the learned counsel for the parties and have considered the rival contentions. 8. The only question warranting consideration in this appeal is as to whether additional tax imposed is a tax which can be added to the amount payable as tax under the Scheme in question or it is prohibited from adding the element of additional tax while assessment is being made under the Scheme in question. 9. The question as to what is the nature of tax which is added as addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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