SHATRUSAILYA DIGVIJAYSINGH JADEJA vs COMMNR. OF INCOME TAX, RAJKOT

The Supreme Court upheld the Gujarat High Court's decision that the declarations made by the appellant under Section 88 of the Kar Vivad Samadhan Scheme, 1998 were valid, directing the designated authority to determine the payable amount under Section 90(1). The Court clarified that the appellant should not be liable for interest on the amount payable, as the liability to pay interest arises only after the amount is ascertained, which was not possible due to the designated authority's prior error in rejecting the declarations. Thus, the additional direction to pay interest was deemed illegal and without authority of law.