NARESHKUMAR BISWESHWAR AGRAWAL Vs. CHAIRMAN/SECRETARY

JUDGEMENT

(1.) The petitioner has challenged the action of the respondents in not accepting the petitioner's declaration under the Income Tax Declaration Scheme, 2016 ("the said Scheme" for short) on the ground that the petitioner failed to deposit full amount of first installment before the due date.

(2.) Brief facts are as under. The petitioner is an individual and is assessable to tax. In order to unearth undisclosed income and to reduce litigation, the Union legislature framed the said Scheme by enacting Chapter IX to the Finance Act, 2016 ("the Act" for short). As per section 183 of the Act, subject to fulfillment of conditions, an assessee could make a declaration of undisclosed income. Section 184 of the Act made special provisions for charging such income. Under subsection(1) thereof, there would be a basic tax at the rate of 30%. Subsection(2) envisaged surcharge thereon. Section 185 provides for penalty at the rate of 25% on such tax. Section 186 prescribes the manner of making declaration. Section 187 pertains to time for payment of tax. Subsection(1) of section 187 provides that tax and surcharge payable under section 184 and penalty payable under section 185 in respect of undisclosed income, shall be paid on or before a date to be notified by the Central Government in the Official Gazette. Subsection(3) of section 187 provides that if the declarant fails to pay the tax, surcharge and penalty in respect of the declaration made under section 183 on or before the date specified under subsection(1), the declaration filed by him shall be deemed never to have been made under this Scheme. Section 191 of the Act provides that any amount of tax and surcharge paid under section 184 or penalty paid under section 185 in pursuance of a declaration made under section 183, shall not be refundable. In terms of subsection( 1) of section 187, the Central Government has notified the following three dates for payment of tax and penalty as per sections 184 and 185 of the Act in three installments. First installment of 25% to be paid on or before 30.11.2016, second installment of 25% to be paid on or before 31.3.2017 and the last installment of 50% to be paid on or before 30.9.2017.

(3.) The petitioner made a declaration under the said Scheme on 16.9.2016 declaring undisclosed income of Rs. 12.62 crores. In all, seven other associate persons and concerns of the petitioner had made similar declarations. Subsequently, the petitioner revised the declaration upon disclosing income of Rs. 13 crores on 29.9.2016. This revised declaration was also accepted by the department. In fact, counsel for the petitioner drew our attention to the clarification issued by CBDT under circular dated 14.7.2016 providing that a declaration once made can be revised before the last date of closure of the Scheme provided undisclosed income in the revised declaration is not less than the undisclosed income declared in the declaration already filed. This revised declaration filed by the petitioner was in tune with the provisions of the Scheme also.