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2024 (2) TMI 118 - MADRAS HIGH COURTBenefit of the Income Tax and Income Declaration Scheme - payment made by the assessee prior to the IDS scheme (i.e. 1st June 2016) rejected - request of the assessee for adjustment of the tax of 1.25 crores towards IDS 2016 rejected as per the IDS Scheme tax paid in the form of Advance tax, Self Assessment tax prior to IDS Scheme (i.e. 1st June 2016) are not allowed to claim under IDS except the TDS payments - HELD THAT:- Income Declaration Scheme, 2016, is a beneficial piece of legislation intended to encourage defaulters to settle their income tax dispute by paying the tax due together with surcharge and penalty. As per Section 183(4), no deduction of any expenditure or allowance shall be allowed against the income in respect of which declaration has been filed. As per Section 193 of the Finance Act, 2016, a declaration made by misrepresentation or suppression of facts is void and shall be deemed never to have been made under the Income Declaration Scheme, 2016 under Finance Act, 2016. If the amount paid by the petitioner during the assessment year 2012-2013 towards “Advance Tax” and “Self Assessment Tax” after due date for filing of the Return u/s 139 was Rs. 1.25,00,00,000/-, it remains to be unexplained as to how the tax liability of the petitioner for the said Assessment Year was reduced to Rs. 94,15,230/- by the petitioner in the declaration filed under the Income Declaration Scheme, 2016 to Rs. 94,15,230/- as detailed in Table-1. But for the aforesaid issue regarding the tax liability of the petitioner for the Assessment Year 2012-13 in the Declaration filed by the petitioner under Income Declaration Scheme, 2016, we see no impediment in allowing the petitioner to adjust the amount paid as “Advance Tax” and “Self Assessment Tax” towards tax liability of the petitioner under Income Declaration Scheme, 2016. Therefore, the impugned order is set aside for limited purpose. The case is remitted back to the respondent along with the Assessing Officer for redo the exercise after examining the accounts of the petitioner for Assessment Year 2012-13 and ascertain whether the petitioner has indeed made a correct declaration of Income for the Assessment Year 2012-13 in the Declarations. If so, the Declaration filed by the petitioner may be accepted and closed under the provisions of the Income Tax and Income Declaration Scheme, 2016. As pointed out in Table-2, there are also certain arithmetical error in so far as the amounts to be paid by the petitioner under the Income Declaration Scheme, 2016. This aspect also may be examined by the respondent along with the Assessing Officer.
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