TMI Blog2018 (2) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... LE MR.JUSTICE AKIL KURESHI) 1. The petitioner has prayed for a direction to the Central Board of Direct Taxes ['CBDT' for short] to decide the petitioner's application for extension of time for payment of last installment of tax under the Income Disclosure Scheme 2016 (hereinafter to be referred to as 'the said Scheme'). 2. Brief facts are as under: The petitioner is an individual. The Central Government framed a scheme for declaration of undisclosed income. Such scheme was framed under the Finance Act of 2016 and was called 'The Income Declaration Scheme 2016' (hereinafter to be referred to as 'the said Act of 2016'). Section 183 of the said Act envisages declaration of undisclosed income. Section 184 of 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no tax, surcharge and penalty referred to in section 184 and section 185 has been paid within the time specified under section 187 the undisclosed income shall be chargeable to tax under the Income Tax Act in the previous year in which such declaration is made; 5. In terms of section 187 of the said Act, the Government of India published in the Official Gazette a notification dated 20.07.2016 specifying the last dates for depositing the tax and penalty in three installments. This shall in substitution of dates previously prescribed in an earlier notification dated 19.05.2016. By the said notification of 20.07.2016, the three dates specified were as under: ( ii) the date on or before which the tax and surcharge is payable under section 184, and the penalty is payable under section 185 in respect of undisclosed income shall 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 that the learned Magistrate relaxed the condition of appearance before the Court. The petitioner thereupon immediately reached Gujarat and applied to the departmental authorities under a letter dated 04.10.2017 for extension of time for payment of last installment of the tax and surcharge and penalty under the said Scheme. Such an application was filed before the Jurisdictional Commissioner as well as before the CBDT. The Commissioner, by the impugned order dated 18.10.2017, conveyed to the petitioner that he has no authority to grant any such extension of time. CBDT has not yet replied to the petitioner. At this stage, this petition has been filed. 8. Having heard learned counsel for the parties and having perused the documents on record, we may recall, the said Scheme itself contains a specific provision making the provision of section 119 of the Income Tax Act applicable to the Scheme. Section 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the powers of the Board for relaxation of the time limit in terms of sub-section (2) of section 119 of the Income Tax Act were meant to be taken away. In fact, section 195 of the Act made the provision of section 119 of the Income Tax Act specifically applicable to the Scheme. In rare and exceptional cases howsoever few and far between may be they, that may be the powers of the Board to condone delay in terms of subsection (2) of section 119 of the Income Tax Act are not shut out completely in their applicability to the scheme. 12.Counsel for the Revenue, however, vehemently contended that the Board has taken a conscious decision not to make any departure primarily in view of the finality sought to be attached to the declarations and payments envisaged under the Scheme and to avoid any discriminatory application of extensions. Our attention was invited to a circular dated 28.03.2017 issued by the Board. This 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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