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TMI Blog2018 (2) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... the said Act provides inter alia that notwithstanding anything contained in the Income Tax Act, the undisclosed income declared under section 183 would be chargeable to tax at the rate of thirty percent of such income and amount of tax so chargeable would be increased by a surcharge with Krishi Kalyan Cess at the rate of twenty-five percent of tax calculated. Under section 185 of the said Act, the person making a declaration of the undisclosed income in addition to the tax and surcharge provided under section 184 would pay penalty at the rate of twenty-five percent of the tax. Section 187 of the Act pertains to time for payment of tax and reads as under: "Time for payment of Tax. 187. (1) The tax and surcharge payable under section 184 and penalty payable under section 185 in respect of the undisclosed income, shall be paid on or before a date to be notified by the Central Government in the Official Gazette. (2) The declarant shall file the proof of payment of tax, surcharge and penalty on or before the date notified under subsection (1), with the Principal Commissioner or the Commissioner, as the case may be, before whom the declaration under section 183 was made. (3) I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be as follows, namely:- (a) the 30th day of November, 2016, for an amount not less than twenty-five percent of such tax, surcharge and penalty; (b) the 31st day of March 2017 for an amount not less than fifty percent of such tax, surcharge and penalty as reduced by the amount paid under clause (a); (c) the 30th day of September, 2017, for the whole amount payable under section 184 and 185 as reduced by the amounts paid under clause (a) and (b)" 6. The petitioner made declaration under the said Scheme on 16.09.2016 of an undisclosed income of Rs. 5,98,20,219/- divided into three years i.e. the years 2011, 2015 and 2016. The Principal Commissioner of Income Tax thereupon asked the petitioner to make payment of a sum of Rs. 1,79,46,066/- by way of tax, of Rs. 44,86,517/- by way of surcharge and a similar sum of Rs. 44,86,517/- by way of penalty under his communication dated 13.10.2016. He specified the following dates and percentage of such amounts to be deposited in three installments as under: " The declarant is hereby directed to make the payment of sum payable as per column (5) of the above table, as specified below: (i) an amount not less than twenty five perce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 119 of the Act, as is well known, pertains to the power of the CBDT to issue instructions to subordinate authorities. In terms of sub-section (1) of section 119, the Board has the power to issue such orders, instructions and directions to the income-tax authorities as it may deem fit for proper administration of the Act and such authorities would be required to observe and follow such orders and instructions of the Board. Sub-section (2) of section 119 starts with an expression "without prejudice to the generality of the forgoing power". Clause (b) thereof provides that the Board may, if it considers it desirable expedient so to do for avoiding genuine hardship in class of cases by general or special order authorize any income-tax authority to admit an application or claim for any exemption, deduction, refund or any other relief under the Act after the expiry of the period specified under the Act for making such application or claim and deal with the same on merits in accordance with law. 9. Under Clause (b) of sub-section (2) of section 119 thus, the Board has ample powers if it considers it desirable or expedient with a view to avoiding genuine hardship in any case to admit an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is circular was primarily in response to large number of complaints and representations received by CBDT by the declarants, who were unable to make the payment of first installment itself. The Board separated out certain technical issues and listed five typical categories of reasons cited for such failure in para 3 as under: "3. As far as remaining declarants are concerned, the reasons for not making timely payments are stated as under:- (a) Personal/emergency reasons (b) Lack of liquidity (c) Confusion about the due date (d) Rush at banks (e) Any other reasons which are attributable to declarants" 13. In this context, the Board cited detailed reasons such as sufficient availability of time to come to a conclusion that granting relaxation or extension beyond the due date would not be feasible in case of delays due to circumstances mentioned in para 3. While doing so, the Board still specified as under: "4. However, some instances have been brought to the notice where the declarant effected the full payment within the due date and same was also acknowledged by the bank, but it was intimated later by the bank that fund transfer did not materialize within the pres ..... 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