Law: Income Tax Act, 1922

Section:

Voluntary Disclosure of Income Scheme, 1997--Scope of S.67 of Scheme---Declaration under scheme---Tax paid beyond prescribed period---Declaration void and non est ---Retention of tax by revenue illegal---Section 70 of scheme inapplicable---Petitioner entitled to refund of tax or adjustment towards arrears---Indian Finance Act, 1997, Ss.67 & 70. Section 67(2) of the Voluntary Disclosure of Income Scheme, 1997, stresses upon the mandatory requirement of payment of tax within the outer limit of time and in the event of any such non-payment of tax the declaration under the scheme will be non est. When the scheme contemplates that a declaration tiled by the assessee was not acted upon the question of retention of tax paid under such declaration does not arise. There is no provision under the scheme whereby the Revenue can retain the tax paid in respect of a declaration which is void and non est and the retention of the tax contrary to the scheme is against Article 265 of the Constitution of India. In such a situation, the provision under section 70 of the scheme will not apply and accordingly the retention of tax by the Revenue is illegal. On December 27, 1997, the petitioner filed a declaration under the Voluntary Disclosure of Income Scheme, 1997, disclosing the income for the assessment years 1991-92. and 1992-93 and paid tax thereon. The said tax was paid t-yond the prescribed period. There was a delay of one day in payment of tax and in view of the delay the Department refused to grant a certificate under section 67(2) of the scheme. The petitioner sought for a refund of the tax paid under the scheme as the declaration was deemed to be void. The respondents refused. On a writ petition filed for a direction to refund the tax: Held, that the Revenue had to refund tile tax paid under the declaration, dated December 27, 1997, to the petitioner within a period of two months from the date of receipt of a copy of the order unless adjustment was made towards any arrears. Shankarlal v. ITO (1998) 230 ITR 536 (AP) ref. JUDGMENT B. PRAKASH RAO, J.--- This writ petition seeks refund of tax of Rs.23,281 paid under the Voluntary Disclosure of Income Scheme, 1997 (for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492