TMI Blog1999 (7) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... ecember 31, 1997. The relevant provisions of the Scheme are : Section 64 of the Act relates to charge of tax on voluntarily disclosed income. It provides for filing of a declaration in respect of any undisclosed income chargeable to under the Income-tax Act (as enumerated in subsection (1) of section 64) in the manner provided in section 65, between July 1, 1997, and December 31, 1997. Section 65 provides that a declaration under section 64(1) shall be made to the Commissioner and such declaration shall be in the prescribed form. Section 66 requires that the tax payable under the Scheme in respect of the voluntarily disclosed income shall be paid by the declarant and the declaration shall be accompanied by proof of payment of such tax. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not pay the tax on or before the date of such declaration. Nor did she pay the tax within three months from the date of filing the declaration with interest as provided in section 67(1) of the Act. She paid the tax of Rs. 1,57,500 (as calculated in the manner provided under section 64) and Rs. 9,450 as interest thereon, in all Rs. 1,66,950 on March 31, 1998. The Commissioner has now sent the following communication dated June 25, 1999 (annexure C), to the petitioner in regard to the said declaration filed on December 29, 1997: "Please refer to the declaration filed by you on December 27, 1997, and the letter dated June 15, 1999, from Ostawal and Jain, C. As referred to above. As seen from the records, tax due on the amount declared w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the short delay of four days in making payment was due to a bona fide error, it ought to be condoned and the declaration should be accepted. The scheme should be liberally construed in favour of the assessees and where there is no undue delay and where the payment of tax with interest is made before the last date contemplated under the scheme for payment with interest, it should be accepted. The scheme (section 66) contemplates that the tax should be paid before the declaration and proof of payment should accompany the declaration. Section 67 contains an exception to the requirement of section 66. It enables the declarant to pay the tax within a period of three months from the date of filing the declaration, with simple interest at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anner and no other, to become entitled to the benefit. The position is some what akin to periods of limitation prescribed for initiating legal or other proceedings. The question of considering the reasons for delay or condoning the delay will arise only when there is a provision for condonation. In the absence of provision for condonation, as in the case of limitation prescribed for an original suit, the question of condoning the delay does not arise at all. Therefore, the impugned order dated June 25, 1999, does not suffer from any infirmity and is not open to challenge. Learned counsel for the petitioner relied on two decisions in support of his contention that the tax could be paid even after the three-month period, provided the delay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t date specified for payment of tax under section 67, when she was going to get the money for making the payment, she met with an accident. She and her husband were admitted to a nursing home. Consequently, the balance of tax (Rs. 5,50,000) and interest was not paid on March 27, 1998, but only on March 30, 1998. The Commissioner treated the declaration as non est, even though the Department did not dispute the fact that the declarant was admitted in a nursing home and was physically unable to make payment on March 27, 1998. The Department contended that the provisions of section 67 were inflexible. The Punjab and Haryana High Court rejected the said contentions on the following reasons : "Mr. Sawhney submits that section 67 lays down an i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t where the 90th day happens to be a bank holiday, payment on the 91st day being the next working day would be valid. The said circular is issued under section 119 of the Income-tax Act. Under that section, the Board has power, inter alia, to tone down the rigour of the law and ensure fair enforcement of the provisions of the Act, by issuing circulars. But, the said to relax the rigour of the law, cannot be used to issue instructions contrary to or ultra vires the statutory provision. The Board circular dated September 3, 1998, permitting payment on the 91st day when the 90th day is a bank holiday is in consonance with section 67(2) and not contrary to it. In fact the clarification is similar to section 4 of the Limitation Act, 1963, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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