HC direction on Adjustment of Income Tax Refund towards Tax, Interest & Penalty under Karvivad Samadhan Scheme

Best India Tobacco Suppliers Pvt. Ltd. Vs CIT (Andhra Pradesh High Court) The important aspect for consideration in this writ petition is when the assessee files declaration under Karvivad Samadhan Scheme, 1998 (for short, ‘the KVS scheme’) i.e., whether the tax refund should be adjusted towards the arrears of the tax proper first and balance towards interest and penalty or conversely towards interest and penalty first and balance towards arrears of tax. Held by High Court- writ petition is allowed and the respondent authorities are directed to adjust the tax refundable to the petitioner f...