COMMISSIONER OF INCOME TAX Vs. E PRAHALATHA BABU

JUDGEMENT

(1.) THE respondent in the writ petition, Commissioner of Income-tax, is the appellant. THE respondent herein submitted a declaration under the Voluntary Disclosure of Income Scheme, 1997. THE said Scheme came into force on July 1, 1997, and the last date for submitting the declaration was December 31, 1997. THE declarant has to file the declaration without paying the tax payable under Section 66 of the Finance Act, 1997, and he may pay the same within three months from the date of filing of the declaration with simple interest at the rate of two per cent, per mensem. THE respondent/petitioner failed to pay the tax, on the basis of the declaration filed by him, before the expiry of three months from the date of filing the declaration. THE respondent ought to have paid the tax on or before March 28, 1998, but he could pay the same only on March 31, 1998. THE appellant, therefore, did not accept the application of the respondent under the Voluntary Disclosure of Income Scheme and as the respondent was denied the benefit of the Scheme, he filed the writ petition. THE learned single (see [2000] 241 ITR 457), held that even though there was a delay of three days in making the payment of tax, the respondent is entitled to the benefit of the Voluntary Disclosure of Income Scheme. Aggrieved by the same, the present appeal is filed.

(2.) WE heard the appellant's counsel. It was submitted by the appellant's counsel that the Voluntary Disclosure of Income Scheme is a special procedure and the payment of tax should be made in accordance with the scheme and if there is any violation of the procedure prescribed under the Scheme by any person, such persons cannot be given the benefit of the scheme. It is true that the said proposition of law is correct. But, in the instant case, the last date for submission of the application under the Voluntary Disclosure of Income Scheme was up to December 31, 1997, and the respondent paid the tax on March 31, 1998. It is true that the declarant should have paid the tax within three months from the date of filing the declaration. The respondent's application was filed on December 29, 1997, and therefore, the tax ought to have been paid on March 28, 1998, but the same was paid only on March 31, 1998. The respondent had applied for a bank loan since he had to pay Rs. 9.75 lakhs by way of tax as the amount declared by him under the Scheme was Rs. 38.36 lakhs. The learned judge (see [2000] 241 ITR 457) has exercised his discretionary power and we do not think that it was contrary to the express provision of law. An appeal against such an order could be interfered with only if the power exercised is irrational or illegal. WE do not think that this is a fit case for this court to interfere in appeal. Therefore, the writ appeal is without any merit. The writ appeal is dismissed. Consequently, C. M. P. No. 20707 of 1999 is dismissed.