TMI Blog2018 (4) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... sistent with the provisions of the scheme which is legislative enactment. This Petition is disposed of by directing the Respondents to recompute – income and thereafter calculate the amount payable by the Petitioner for settlement under the Samadhan Scheme. The Designated Authority is directed to complete entire exercise of computing disputed income and the amount payable for settlement as expeditiously as possible and within a period of six weeks from today and as the Petitioner had paid the amounts as computed by the Designated Authority in his certificate dated 10.2.1999, the Designated Authority shall refund excess paid by the Petitioner, if any, as so found on re-computation of the amount payable after computing disputed income on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 143(3) of the Income Tax Act, 1961 enhanced the income to ₹ 37.09 Lakhs raising a demand of ₹ 1.39 Lakhs. 4. Being aggrieved, the Petitioner filed an Appeal to the Commissioner of Income-tax (Appeals) [CIT(A)]. However, by the order dated 12th March, 1998, the appeal of the Petitioner was dismissed by the CIT(A). This resulted in filing an appeal to the Income Tax Appellate Tribunal (Tribunal). This, appeal before the Tribunal was pending as on 1.9.1998 when the Samadhan Scheme which was notified as coming into effect as a part of the Finance Act, 1998. The object and purpose of the Samadhan Scheme was to ensure that tax disputes/ litigation pending at different levels are effectively settled so as to declog the sy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Definitions 87 (a)....... (b)....... (c)........ (d)....... (e) disputed income , in relation to an assessment year, means the whole or so much of the total income as is relatable to the disputed tax; (f) disputed tax means the total tax determined and payable, in respect of an assessment year under any direct tax enactment but which remains unpaid as on the date of making the declaration under Section 88; (g) to (l)....... (m) tax arrear means (i) in relation to direct tax enactment, the amount of tax, penalty or interest determined on or before the 31st day of March, 1998 under that enactment in respect of an assessment year as modified in consequence of giving effect to an appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 87(e) and (f) of the Samadhan Scheme the disputed income has to be arrived at on the basis of tax unpaid on the date of filing declaration under Section 88 of the Samadhan Scheme. It is submitted that the issue now stands concluded by the decision of the Delhi High Court in B.P. Jain Another v/s. CIT 381 ITR 423 , on similar facts in favour of the Petitioner. 10. As against the above, Mr. Suresh Kumar the learned counsel for the Revenue supports the certificate dated 10.2.1999 and submits that the amount payable under the Samadhan Scheme as computed, is correct and calls for no interference. This is so as it is done in terms of the Circular dated 6.11.1998 issued by the Central Board of Direct Taxes (CBDT). It is submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dated 30.12.1998 and the amount payable for the settlement of tax dispute at ₹ 38,703/. 12 However, the Designated Authority while granting the certificate dated 10.2.1999 determined the amount payable for settling the dispute at ₹ 1.66 Lakhs. The aforesaid computation by the Designated Authority at ₹ 1.66 Lakhs has been arrived at by computing the disputed income on the basis of taxes paid and not on taxes unpaid. This, according to the Revenue, is on the basis of an application of the CBDT Clarification dated 6.11.1998. This direction of taking the tax paid as the basis of computing the disputed income was provided in the CBDT Circular dated 6.11.1988. The Delhi High Court in the case of B. P. Jain (supra) held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In any case, authorities under the Samadhan Scheme have to implement scheme in terms of the its provisions. Circulars/clarifications issued by the CBDT even for the purpose of appropriate administration of the scheme cannot be inconsistent with the provisions of the scheme which is legislative enactment. In these circumstances, it would be appropriate that the issue is restored to the Designated Authority to determine the disputed income on the basis of unpaid tax as provided in Section 87(e) and (f) of Samadhan Scheme. It is only after having so determined the disputed income under the Scheme that the amount payable for the settlement of the dispute would be calculated in accordance with Section 88 of the Samadhan Scheme. 14. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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