PINNACLE VASTUNIRMAN PVT. LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition, petitioner has challenged the legality and validity of the refusal by respondent no. 3 to adjust/give credit to the amount paid by petitioner under the Income Declaration Scheme, 2016 ("the IDS"), in petitioner's application made under the Direct Tax Vivad Se Vishwas Act, 2020 ("DTVSV Act").

(2.) By Chapter 9 of the Finance Act, 2016, the Government of India announced the IDS and gave an opportunity to any person to make a declaration in respect of any income chargeable to tax under the Income Tax Act for any assessment year prior to the assessment year beginning in April 2017-(a) for which he has failed to furnish a return under Sec. 139 of the Income Tax Act; (b) which he has failed to disclose in a return of Income Tax furnished by him under the Income Tax Act before the date of commencement of the Scheme; (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Income Tax Act or to disclose fully and truly all material facts necessary for his assessment or otherwise.

(3.) To put it simply, it gives opportunity to a person to voluntary disclose undisclosed income. Under the IDS it also provided a person immunity from interest, penalty and prosecution except as provided under the IDS.