MAHALI ASSANAR AZEEZ Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) The petitioner is an individual assessee under the provisions of the Income Tax Act, 1961. For the assessment year 2009-2010, there was a demand for a sum of Rs.85,00,041.00 (Eighty-five Lakhs Forty-one only) as tax. A penalty of Rs.40,92,205.00 (Forty Lakhs Ninety-two Thousand Two Hundred Five only) was also imposed on the petitioner. While appeals were pending against the order of assessment as well as the order imposing the penalty, the petitioner preferred an application to settle the liability under the Direct Tax Vivad se Vishwas Act, 2020 . The amount payable by the petitioner was determined to be Rs.19,69,747.00 (Nineteen Lakhs Sixty-nine Thousand Seven Hundred Forty-seven only) after giving credit to a sum of Rs.53,50,029.00 (Fifty-three Lakhs Fifty Thousand Twenty- nine only) already paid by the petitioner pending the proceedings. According to the petitioner, by an inadvertent error, the petitioner paid only a sum of Rs.19,57,182.00 (Nineteen Lakhs Fifty-seven Thousand One Hundred Eighty-two only) and thereby there was a short remittance of Rs.12,565.00 (Twelve Thousand Five Hundred Sixty-five only).

(2.) The petitioner is before this Court being aggrieved by the fact that on account of the short remittance of Rs.12,565.00, the competent among the respondents has not completed the proceedings by treating the issue as settled. It is submitted that, on noticing the error, the petitioner subsequently remitted the amount of Rs.12,565.00 and the same may be treated as substantial compliance with the provisions of the Settlement Scheme (the Scheme).

(3.) The learned Senior Standing Counsel appearing for the Income Tax Department would submit the terms of the Scheme under the Direct Tax Vivad se Vishwas Act, 2020 are specific, and if the amount payable by the petitioner is not paid in full before the date specified, the petitioner will lose the benefit of the Scheme. It is submitted that though the petitioner had remitted substantial amounts, there is an admitted short remittance of a sum of Rs.12,565.00, making the petitioner ineligible for settling the matter in terms of the provisions contained in the Scheme.