(Appeals) were dismissed for failure to pre-deposit the self assessment tax. In December 1998, the respondents therein had filed revision petition and appeals under the Income Tax Act and Wealth Tax Act to the authorities under the Act so as to obtain benefit of KVSS scheme. The department did not accept the declarations filed by the respondents therein for the benefit under the KVS scheme 1998 on the ground that the revision petition filed by the respondent- assessee were time barred and as such cannot be said to be pending in terms of Section 95(1)(c) of the Finance (No.2) Act, 1998. The Apex Court held that the object of the KVS Scheme 1998 was to settle tax arrears locked in litigation at a substantial discount. It provided that any tax arrears could be settled by declaring them and paying the prescribed amount of tax arrears and it offered benefits and immunities from penalty and prosecution to the assessee who opted for it. The object of the scheme was to put an end to all the pending disputes in the form of appeals, reference, revisions and writ petitions under the Act. The Apex Court held that whether any appeal is validly pending is a question entirely for the Appellate Court before whom the appeal is pending to decide at the hearing of the appeal. However, there is nothing to prevent a party from filing an appeal which may ultimately be found to be time barred. The Apex Court held that the mere fact that it may finally be concluded that the appeal is not maintainable, would not prior to such a finding, lead to a conclusion that no appeal was pending. In the aforesaid view, the Apex Court dismissed the appeal of the revenue and upheld the order of the High Court that order of the Designated Authority not entertaining the declaration on the ground that the appeals are not pending as they are time barred was not sustainable.
