KVSS 1998 : Rectification u/s.154 of Income-tax Act, 1961 : A.Y. 1993-94 : During the pendency of appeal before the Tribunal the assessee preferred an application under KVSS 1998 : After issue of certificate under KVSS a rectification order demanding addi

[CIT v. Goel Lottery Centre, 323 ITR 262 (All.)]

During the pendency of appeal before the Tribunal for the A.Y.
1993-94, the assessee preferred an application under KVSS 1998. Pursuant thereto
the designated authority issued certificate u/s.90 of the KVSS 1998. Thereafter,
on 31-3-2000 the Deputy Commissioner passed an order of rectification u/s.154 of
the Income-tax Act, 1961 and raised an additional demand of interest u/s.234B.
According to him the demand of interest calculated earlier was low. The
Commissioner (Appeals) set aside the order and this was upheld by the Tribunal.

On appeal by the Revenue, the Allahabad High Court upheld the
decision of the Tribunal and held as under :

“(i) In view of the provisions of the Finance (No. 2) Act,
1998, which lays down the Kar Vivad Samadhan Scheme, it is apparent that the
order passed u/s.90(1) determining the sum payable under the Scheme shall be
conclusive in respect of all the matters stated therein and no matter covered
by such order shall be reopened in any other proceeding under the direct tax
enactment or indirect tax enactment or under any other law for the time being
in force. It further contemplates that only in a case where the certificate is
found to be false, the designated authority at any stage can withdraw the
same.

(ii) After the issue of the certificate u/s.90 of the KVSS
1998, the assessing authority had no authority to sit over the certificate.
The rectification was not permissible.”