Dismissing the petition the Court held that ; there was no tax arrears on the date of filing of the application as once the assessment was set aside demand gets cancelled . Accordingly rejection of application was held t be valid .As regards the voluntary deposit of the amount the same was directed to be refunded on furnishing of evidence of deposit of tax .
Kapurchand Jethaji & Co. v. CIT (2018) 164 DTR 98 (Bom) (HC)
Kar Vivad Samadhan Scheme -Finance Act 1988
S.88: Declaration and prescribed rates of amounts payable -No tax arrears on the date of filing of declaration – Arrears was adjusted without giving an notice of hearing -Rejection of application was held to be valid .[S.87 ]