TMI Blog2017 (8) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... peal is pending before the appellate Commissioner on the specified date. The expression used “if it relates to any tax arrear” in subclause( ii) of clause(a) of section 208 therefore, would include penalty also. In view of such clear definition, we are unable to accept the contention of Shri Soparkar that for the limited purpose of subclause( ii), the term “tax arrear” must exclude the penalty. Reference to any tax arrear is not limited to an order of assessment or reassessment but could also be in relation to an assessment or reassessment, clearly indicating the legislative intent not to confine the term “tax arrear” in the said clause to the simplicitor tax exclusive of interest or penalty, contrary to the plain language used in the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... habhai Patel during which various incriminating documents were found and seized. These documents indicated the cost of lands, being a plot at Vesu bearing SR No. 223, 224 and 225, totalling to ₹ 3.29 crores (rounded off) and as per such documents, expenses of ₹ 1.81 crores was incurred with respect to such lands. The assessee had jointly purchased such lands. In the return filed by the assessee for the assessment year under consideration, the income declared was ₹ 51,300/. The Assessing Officer therefore, issued a notice dated 26.3.2016 under section 148 of the Income Tax Act ( the Act for short) reopening the assessment of the petitioner for the said assessment year 2007-2008. In response to such notice, the assessee fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity in accordance with the provisions of section 203 in respect of tax arrear, or specified tax, then, notwithstanding anything contained in the Incometax Act or the Wealthtax Act or any other provision of any law for the time being in force, the amount payable under this Scheme by the declarant shall be as under, namely: ( I) in case of pending appeal related to tax arrear being (a) tax and interest,- ( i) in a case where the disputed tax does not exceed ten lakh rupees, the whole of the disputed tax and the interest on disputed tax till the date of assessment or reassessment, as the case may be; or ( ii) in any other case, the whole of disputed tax, twentyfive per cent. of the minimum penalty leviable and the int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r in respect of which an assessment has been made under section 153A or 153C of the Incometax Act or assessment or reassessment for any of the assessment years, in consequence of a search initiated under section 37A or requisition made under section 37B of the Wealthtax Act if it relates to any tax arrear; ( ii) relating to an assessment or reassessment in respect of which a survey conducted under section 133A of the Incometax Act or section 38A of the Wealthtax Act, has a bearing if it relates to any tax arrear; ( iii) relating to an assessment year in respect of which prosecution has been instituted on or before the date of filing of declaration under section 202; ( iv) relating to any undisclosed income from a source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts are not in dispute. The petitioner was subjected to reassessment on the basis of materials found and seized during survey operation in case of Baldevbhai Bhikhabhai Patel, prima facie, indicating much larger investment by the assessee in purchase of lands. This resulted into substantial addition of ₹ 51.85 lacs in the hands of the assessee for the assessment year 2007-2008 during such reassessment proceedings. This addition has achieved finality since we are told that the petitioner has not challenged the same. The Assessing Officer having passed the order levying penalty of ₹ 17.28 lacs, the petitioner had challenged the same before the Commissioner (Appeals). Pending such appeal, the assessee desired to take the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x arrear in subclause( ii) of clause(a) of section 208 therefore, would include penalty also. In view of such clear definition, we are unable to accept the contention of Shri Soparkar that for the limited purpose of subclause( ii), the term tax arrear must exclude the penalty. This contention he raised referring to the beginning portion of subclause( ii) where it refers to an assessment or reassessment in respect of which such tax arrear is involved. However, this contention loses sight of the wider expression used by the legislature when it refers to relating to an assessment or reassessment . In other words, therefore, reference to any tax arrear is not limited to an order of assessment or reassessment but could also be in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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