M.katju, J. - (1.) THIS writ petition has been filed against the impugned order of the CIT, Agra, dt. 4th May, 1999, annexure 1, to the writ petition. It has also been prayed that respondent No. 1 be directed to entertain the petitioners' application under the Kar Vivad Samadhan Scheme, 1998, treating it to be within limitation and to quash the recovery proceedings including the attachment order dt. 21st April, 1999, (annexure 8 to the petition).
(2.) THE petitioner is a partnership firm. For the asst. yr. 1992-93 it had filed a return showing taxable income at Rs. 53,950. However, the assessing authority passed an assessment order assessing the income of the petitioner to be Rs. 76,63,740. THE petitioner filed an appeal, which was allowed by the CIT and the matter was remanded back to the assessing authority and the assessing authority passed a fresh order dt. 30th March, 1998, calculating the total income of the petitioner to be Rs. 46,07,720. A demand notice for Rs. 13,13,085 was issued. Against that order the petitioner filed an appeal to the CIT(A) which was rejected on 27th Aug., 1998, vide annexure 2 to the writ petition. THEreafter it filed further appeal before the Tribunal on 15th Jan., 1999. A true copy of the memo of appeal has been annexed as annexure 3 to the petition. The Central Government issued the Kar Vivad Samadhan Scheme under the Finance (No. 2) Act, 1998, which came into force from 1st Sept., 1998, and was applicable till 31st Jan., 1999. This scheme provided for settlement of disputed arrears of tax, etc. Sec. 88 of the aforesaid Finance (No. 2) Act of 1998, states as follows : "Subject to the provisions of this scheme, where any person makes, on or after the 1st day of Sept., 1998, but on or before the 31st day of Dec., 1998, a declaration to the designated authority in accordance with the provisions of s. 89 in respect of tax arrear, then, notwithstanding anything contained in any direct tax enactment or indirect tax enactment or any other provision of any law for the time being in force, the amount payable under this scheme by the declarant shall be determined at the rates specified hereunder." The petitioner sent a declaration in Form No. IA dt. 22nd Jan., 1999, and sent it to the designated authority, i.e., the CIT, Agra, allegedly under certificate of posting dt. 22nd Jan., 1999. Photocopies of the ten declaration forms filed by the petitioners and its partners for the asst. yrs. 1988-89 and 1992-93 have been collectively annexed as annexure 4 to the writ petition. The photocopy of the postal certificate has been annexed as annexure 5 to the writ petition.
(3.) IT is alleged in para 15 of the writ petition that the petitioner's partner met the CIT personally and requested for early disposal of their application filed under the aforesaid scheme. They also gave reminders vide letters dt. 15th Feb., 1999, and 28th April, 1999, vide annexures 6 and 7 to the writ petition. However, the petitioner received the impugned order dt. 4th May, 1999, stating that the petitioner's application under the aforesaid scheme had been rejected as the same was received in the office of the CIT, Agra, on 5th Feb., 1999, i.e., after the last date for receiving applications, namely, 31st Jan., 1999. Thereafter the TRO passed an order dt. 21st April, 1999, for attaching the petitioner's factory. Learned counsel for the petitioner submitted that since the petitioner sent the declaration in Form No. IA under the scheme by postal certificate dt. 22nd Jan., 1999, it should be presumed that it was received in the office of the designated authority in a day or two. He submitted that the scheme does not contemplate that the declaration must be received in the office of the designated authority on or before 31st Jan., 1999.;