9911796707
TMI Blog2018 (4) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... ions 86 to 98 of the Finance (No.2) Act, 1998. The basis of the challenge is the amount of tax paid taken as the basis to work out the disputed income, to arrive at the amount payable to settle the tax dispute, resulted in a higher figure than the Petitioner is required to pay in terms of the Samadhan Scheme. This Petition relates to Assessment Year 1994-95. 2 This Petition was filed on 11.3.1999. Rule was issued on 15.3.1999 and though interim relief was not granted, it was made clear that payments made by the Petitioner shall be subject to the outcome of the Petition. Thus, the Petitioner had made payments in accordance with amounts computed in terms of certificate dated 10.2.1999 to arrive at the settlement under Samadhan Scheme. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. 30.12.1998. 6. On 16.2.1998, the Respondent No.1 i.e. Designated Authority issued a certificate under Section 90(1) of the Samadhan Scheme determining amount payable for the settlement of the tax disputes for Assessment Year 199495 at Rs. 1.66 Lakhs. This was on the basis of determining the disputed income on the basis of the tax paid on the date of deduction. 7. Therefore, the Petitioner on 25.2.1999 by its letter to the Respondent no.1Designated Authority pointed out that the amount certified as payable under the Samadhan Scheme was worked out in manner which is contrary to the provisions of Samadhan Scheme. However, the Designated Authority did not respond to the same and this resulted in filing this Petition. 8. Before dealing w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, namely: (a) where the tax arrears is payable under the Income Tax Act, 1961 (43 of 1961), (i) in the case of a declarant, being a company or a firm, at the rate of thirty-five percent of the disputed income; (ii) in the case of a declarant, being a person other than a company or a firm, at the rate of thirty percent of the disputed income; (iii) in the case where tax arrear includes incometax, interest payable or penalty levied, at the rate of thirtyfive percent of the disputed income for the persons referred to in clause (i) or thirty percent of the disputed income for the persons referred to in clause (ii); (iv)........ (v)..... (b) to (f)......" 9 The primary grievance of the Petitioner is that the Designated Authority has c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tax unpaid on the date of declaration. It is on the disputed income computed from the disputed tax i.e. unpaid tax that the Assessee can settle with the Income Tax Department by filing necessary declaration in terms of Section 88 of the Samadhan Scheme. On filing of this declaration it is for the Designated Authority to examine the same and determine the amount payable by the Assessee seeking benefit of the Samadhan Scheme and grant a certificate setting forth the amount payable for full and final settlement of the tax dispute between the Revenue and the Assessee. The disputed income in terms of Section 87(e) of the Samadhan Scheme has to be computed on the basis of total income as is relatable to the disputed tax. The Petitioner compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not on the basis of the tax unpaid. Thus, contrary to Section 87(e) and (f) of the Samadhan Scheme. 13. In any case, it is settled position that the clarifications/circulars issued by the CBDT cannot amend legislative enactment such as Samadhan Scheme issued as a part of the Finance Act, 1998. It was also contended on behalf of the Revenue that entire exercise of computing the disputed income whether on the basis of tax unpaid or tax paid would result in same figure and the entire exercise would be academic. However, we did try to understand from Mr. Suresh Kumar how the disputed income whether computed on the basis of tax paid or tax unpaid would both reach the same amount of disputed income, however, we are unable to understand how ..... X X X X Extracts X X X X X X X X Extracts X X X X
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