RENUKA DATLA vs COMNR. OF INCOME TAX KARNATAKA

The Supreme Court examined the applicability of the 'Kar Vivad Samadhan Scheme, 1998' under the Finance (No.2) Act, 1998, specifically focusing on the definitions and conditions outlined in Sections 87(m), 88, 89, and 95. The Court held that tax arrears must be determined before 31st March 1998 and remain unpaid at the time of declaration to qualify for settlement under the scheme. It clarified that the modification of tax determinations does not need to be completed by the specified date, thus upholding the appellants' right to declare their tax arrears under the scheme despite the rejection by the Respondent.