Girish Chandra Gupta, J. - (1.) The subject matter of challenge in this writ petition is the determination of amount payable by the petitioner under the Kar Vivad Samadhan Scheme, 1998, and a clarification dated January 5, 1999, issued by the member (Legislation) of the Central Board of Direct Taxes. The facts and circumstances of the case are as follows :
(2.) For a number of assessment years the petitioner was made liable to pay penalty, particulars whereof are as follows : JUDGEMENT_320_CTR185_2003Html1.htm
(3.) The Kar Vivad Samadhan Scheme, 1998, came into force on September 1, 1998. Section 88 of the aforesaid scheme in so far as the same is material for our purpose provides as follows : "88. Subject to the provisions of this Scheme, where any person makes, on or after the 1st day of September, 1998, but on or before the 31st day of December, 1998, a declaration to the designated authority in accordance with the provisions of Section 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, namely :-- (a) where the tax arrear 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 per cent. 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 per cent. of the disputed income ; (iii) in the case where tax arrear includes income-tax, interest payable or penalty levied, at the rate of thirty-five per cent. of the disputed income for the persons referred to in Clause (i) or thirty per cent. of the disputed income for the persons referred to in Clause (ii) ; (iv) in the case where tax arrear comprises only interest payable or penalty levied, at the rate of fifty per cent. of the tax arrear.";