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Judgment
Heard learned counsel for the parties.
This is an application u/s 256(2) of the Income Tax Act, 1961 (hereinafter referred to as ''the Act of 1961''), for directing the Tribunal, Jaipur Bench, Jaipur, to state the case and refer the following questions of law said to be arising out of its order, dated 17-1-1995, passed in ITA No. 89/Jp/95, because an application u/s 256(1) has been rejected by the Tribunal on 22-1-1996 by holding that no question of law arises out of appellate''s order :
"Whether, on the facts and circumstances of the case the Tribunal is justified in cancelling the penalty u/s 271(1)(a) on the ground that the assessee was ignorant of law whereas the facts indicate that he defied the law even after service of notice ?
"Whether the Tribunal''s order cancelling the penalty u/s 271(1)(a) is not perverse?"
It has been stated by the learned counsel for the respondent that since filing of the present application and during the pendency of this case the Central Board of Revenue has promulgated Kar Vivad Samadhan Scheme, 1998, popularly known as (KVSS) u/s 90(2) read with section 91 of the Act of 1998 granting immunity from the emsting liabilities of penalty and interest on making of requisite payment under that scheme as determined by Designated Authority under the scheme and on obtaining the certificate thereunder. On such payment the pending proceedings in respect of demands covered by such KVSS shall stand abated.
Learned counsel further submits that the respondent-assessee has availed of the benefit of KVSS and has been issued certificate to that effect for the assessment year in question on 8-4-1999, certifying that the Designated Authority by order dated 25-1-1999, has determined the amount of Rs. 10, 284 payable by the declarant in accordance with the provisions of the scheme and declarant has paid said sum on 4-4-1999, and granting immunity from the imposition of penalty under the Act of 1961, in respect of matters covered in the aforesaid declaration.
In view of aforesaid circumstances, we are of the opinion that the question raised in the present case has become of academic importance. Now no penalty can be imposed which already stood deleted when the KVSS came into existence and the benefit has been availed of by the assessee on paying amount determined under the scheme by the Designated Authority thereunder.
Accordingly, this application is dismissed as having abated. There shall be no order as to costs.