TMI Blog2002 (2) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the court was delivered by S. RAJENDRA BABU J. -Leave granted. The appellant before us is the widow of the original assessee under the Income-tax Act, 1961 (hereinafter referred to as 'the Act"). For the assessment year 1988-89, an appeal was pending before the Commissioner of Income-tax (Appeals) while for assessment years 1989-90 and 1991-92, appeals were pending before the Income-tax Appellate Tribunal. On January 23, 1999, the appellant set out the details of the matters in dispute in the said appeals requesting the Department to indicate or compute the tax arrears as per the Kar Vivad Samadhan Scheme, 1998 (for short "the KVSS") so that all disputes in relation to these three assessment years can be resolved. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an Scheme for these three assessment years would be Rs.13,55,018 and respondent No. 1 by the certificate issued on February 26, 1999, assessed the amount of tax payable by the appellant to be Rs.14,40,189 in place of Rs.13,55,018 as claimed by the appellant. On receipt of the said certificate under section 90(1) of the Kar Vivad Samadhan Scheme from respondent No. 1, the appellant deposited the said sum of Rs.14,40,189 under separate challans. On deposit of the entire amount demanded by respondent No. 1 as per the Kar Vivad Samadhan Scheme for these assessment years a communication was addressed on behalf of the appellant dated March 22, 1999, for issue of certificate under section 90(2) of the Kar Vivad Samadhan Scheme and for the deemed w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Allahabad High Court. On July 14, 2000, the appellant filed a writ petition in the High Court challenging the issuance of the notice dated June 23, 2000, being C. W. P. No. 3788 of 2000 on the ground that the same is without jurisdiction. The High Court took the view that what is under challenge in the writ petition is only a showcause notice and it would be open to the appellant to highlight the question relating to lack of jurisdiction before the Commissioner when the matter is taken up for further consideration and it would be proper for the Commissioner to decide the question as to whether he has jurisdiction under the second proviso to section 90(1) of the Kar Vivad Samadhan Scheme to act in the manner as proposed by the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettlement of the tax arrears within a period of sixty days. Thereafter, except on ground of false declaration made by the declarant, every order passed under sub-section (1) of section 90 determining the sum payable under the scheme, is absolutely conclusive as to the matters stated thereunder and no matter covered by such order can be reopened in any other proceeding under any law for, the time being in force. After this determination under section 90(1) of the Kar Vivad Samadhan Scheme, another certificate is issued under section 91 of the Kar Vivad Samadhan Scheme on the basis of which immunity is granted to the declarant from instituting any proceeding, for prosecution for any offence under any direct tax enactment or indirect tax enact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... February 26, 1999 under section 90(1) in F. No. 2A be not amended as mentioned above, under the second proviso to section 90(1) of the Finance (No. 2) Act, 1998 of KVSS." We may notice that a certificate issued under section 90(1) of the Kar Vivad Samadhan Scheme making a determination as to the sum payable under the Kar Vivad Samadhan Scheme, is conclusive as to the matters stated therein and cannot be reopened in any proceedings under any law for the time being in force, except on the ground of false declaration by any declarant. Therefore, before issue of a notice, there should be satisfaction that the declarant has made a false declaration. There is no such allegation in the course of the notice issued. All that is stated is that "ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income-tax, Delhi-VII ordered scheme was considering Rs.53,80,335 as disputed taxes in arrears for all the three years and as per the provisions of the scheme, the amount payable for settlement was determined at Rs.14,40,188 under section 90(1) of the said Act (Copy enclosed as annexure A). The assessee paid the said amount and accordingly certificate under the said scheme for settlement under section 90(2) of the said Act dated March 31, 1999 was issued (copy enclosed as annexure B)." The appellant in the course of the declarations filed specifically stated that any adjustment of refunds towards tax arrears of the appellant by the Department in the earlier years without following the mandatory procedure of section 245 of the Act would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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