The affidavit, filed on September 14, is in response to a petition filed by the All India Federation of Tax Practitioners (AIFTP). The federation has opposed the Samadhan scheme, stating that it discriminates against taxpayers who have paid taxes and those who have not paid the `disputed' tax. The scheme is operational between September 1 and December 31.

The ministry's affidavit states, "The scheme has followed a very objective and rational classification based on a `intelligible differentia' which distinguishes those assessees that are grouped together from others and differentia has a rational relation to the object sought to be achieved".

"The scheme has a give and take approach and there is corresponding gain to both the parties", statesthe affidavit which was submitted by finance ministry undersecretary Dasavi Darunakara Rao.

The affidavit admits that the scheme does not create two classes of assessees, as alleged by the AIFTP, but three.

These include those having litigation but no arrears of taxes; those having arrears of tax but no litigation and lastly, those assessees who have arrears outstanding as also disputes at various stages. Samadhan is applicable to the last class of assessees.

Denying that the object of the scheme is only to reduce litigation, the affidavit states that the finance minister has clearly stated in the budget speech the twin objective of the scheme regarding outstanding dues and reduction of litigation.

"The reduction of tax arrears is an important reduction of litigation. The alleged discrimination in terms of class of assessees, who have paid the taxes and consequently cannot avail of the scheme and other class of assessees, which have pending arrears is wrong, incorrect and denied," itadds.

Pertinently, the affidavit has not commented on the issue that the revenue department itself is a major litigant.

The affidavit avers that all the tax payers are subject to the same process of collection of taxes with regard to the demands raised by way of additions made to their returned income.

As regards the AIFTP's objection about keeping March 31, 1998 as the cut-off date for Samadhan, the finance ministry's affidavit states that it was imperative to keep the cut-off date in view of the twin objective of the scheme.

Samadhan is a package covering all the contentious issues of a particular assessment year where the assessee is not allowed to pick and choose the issues.

According to the ministry, backdating the cut-off date would have led to opening of up all old pending cases where taxes have been collected more than 10 years to 15 years back and where the appeals are pending.