TMI Blog1999 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... eclaration. Section 67(1) enables the declarant to file the declaration without paying the tax as contemplated under section 66 and he may pay the tax within three months from the date of filing of the declaration with simple interest at the rate of 2 per cent. for every month or part of the month comprised in the period beginning from the date of filing the declaration and ending on the date of payment of such tax. Section 67(2) made it clear that if the declarant fails to pay the tax in respect of the voluntarily disclosed income before the expiry of three months from the date of filing of the declaration, the declaration filed by him shall be deemed never to have been made under the scheme. Section 70 contemplates that the tax paid in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unds ; especially when the tax paid is not refundable and also when the declaration made by the petitioner can be used against him for reopening of the income-tax returns submitted by him for the previous assessment years. Learned counsel for the respondent vehemently contended that the Act provides or prescribes the procedure to be followed. Under the said procedure, the time limit is also prescribed for compliance of the formalities to have the benefit of the scheme. Hence, if the assessee wants to have the benefit of the scheme he has to comply with the conditions specified in such provisions of the Act in a strict sense. Section 67(2) of the said Act makes it clear that if the compliance of condition is not strictly adhered to, then t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereunder, namely:--- (i) in the case of a declarant, being a company or a firm, at the rate of 35 per cent. of the voluntarily disclosed income ; (ii) in the case of a declarant, being a person other than a company or a firm, at the rate of 30 per cent. of the voluntarily disclosed income. (2) Nothing contained in sub-section (1) shall apply in relation to--- (i) the income assessable for any assessment year for which a notice under section 142 or section 148 of the Income-tax Act has been served upon such person and the return has not been furnished before the commencement of this Scheme ; (ii) the income in respect of the previous year in which a search under section 132 of the Income-tax Act was initiated or requisitioned unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eclarant is revealing the secret in order to have the benefit of the scheme which enables him to convert the hidden wealth as an accounted one by paying the tax. Further, the tax paid under the scheme is not refundable one as per section 70 of the Act. When such strict restrictions are there whether it would be reasonable to refuse the benefit of the scheme to the declarant after the payment of the tax by him. It goes without saying that the declarant is not only deprived of the tax paid by him but also subjects himself to other proceedings on the basis of the declaration. In such circumstances, there should be some leniency with regard to the strictness of the period of limitation to comply with the payment of tax. In an identical case i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore March 31, 1998. Any deposit before that should not be considered as being beyond the scheme. In any event, the interest having been paid, the Revenue has suffered no loss." I am in total acceptance with the view taken by the learned judges of the Punjab and Haryana High Court, as the same is more reasonable and sensible. Otherwise, the person who made the declaration by revealing the secret, because of his inability to comply with the condition within the period of limitation, will be definitely subject himself for other proceedings. He will also be forced to forgo the tax paid by him. In the result, not only deprived of the benefit of the scheme but also forced to face the loss which cannot be the intention of the Legislature. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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