9911796707
TMI Blog2005 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... tional direction given by the Gujarat High Court vide judgment dated September 25, 2002, holding the appellant liable to pay interest under the Kar Vivad Samadhan Scheme, 1998 (for short "the Scheme") on the tax arrears to be determined by the designated authority (for short "the DA"). The appellant filed a writ petition in the Gujarat High Court against the rejection of the declarations made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DA to determine the amount payable under section 90(1) of the Scheme. In these appeals, the only grievance of the appellant is that the additional direction given by the impugned judgment making the appellant, liable to pay interest on the amount payable under section 90 was illegal and without authority of law. Mr. M.L. Varma, learned senior counsel appearing on behalf of the appellant, submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion given by the High Court should be cancelled. The Finance (No. 2) Act, 1998 introduced a Scheme called the Kar Vivad Samadhan Scheme, 1998. It was a recovery scheme. Under the Scheme, the tax arrear had to be outstanding as on March 31, 1998. Under section 87(f), "disputed tax" was defined to mean total tax determined and payable under the Income-tax Act/Wealth-tax Act in respect of an assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant was not liable to pay interest as his liability accrued only after the ascertainment of the amount payable under section 90. For the aforestated reasons, on the facts of this case, we set aside the additional direction given by the impugned judgment directing the appellant to pay interest, particularly when the Department had wrongly rejected the declarations filed under section 88. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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