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TMI Blog2019 (2) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under the Income Declaration Scheme of 2016 (for short, "IDS"). In terms of such declaration, as per the provisions contained in the Scheme, the Petitioner had to deposit a minimum 25% of the total sums payable pursuant to such declaration, latest by 30th November, 2016. The total tax payable by the Petitioner on such declaration was Rs. 17,40,855/along with surcharge and penalty of Rs. 4,35,213/. The Petitioner had to pay a minimum ¼th of the total of these two sums latest by 30th November, 2016. The Petitioner could not make the payments. (ii) The Petitioner, therefore, on 12th December, 2016 wrote the the Central Board of Direct Taxes (for short "CBDT"), conveying that her daughter was admitted in hospital on 20th November, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny further relaxation under the IDS, would demotivate the honest tax payers who are paying taxes promptly. Under the circumstances, the board was of the opinion that no relaxation in the payment schedule provided under the IDS can be granted. It was also stated that this would be in consonance with the Circular dated 28th March, 2017 in which, delay on account of personal reasons would not be considered the fit case for condonation of delay. 3. Petitioner has, therefore, in the present Petition challenged the said order dated 17th October, 2017 passed by the Board. The Petitioner has also challenged the validity of the CBDT Circular dated 28th March, 2017. 4. Appearing for the Petitioner, learned Counsel Shri Naniwadekar, raised following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have not disclosed their income previously, to come clean, pay tax along with surcharge and penalty (which was restricted at lower rate) and upon which the Assessee would be spared the long drawn procedure of assessment, penalties and prosecution. 6. It is true that unlike the earlier Schemes, making similar provisions, Section 195 of the Finance Act, 2016 contained a provision, clarifying that, besides others, Section 119 of the Act would be applicable in relation to the proceedings under the said Scheme. The applicability of Section 119 of the Act, thus, was specifically retained in relation to the provisions of the Scheme. 7. It was in this context that the CBDT had issued its Circular dated 28th March, 2017. Such Circular aimed to ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accommodate a few, especially when most of the declarants had abided by the prescribed schedule date, does not merit consideration. It is noted that IDS does not provide for levy of interest on delayed payments, and hence, granting such a condonation to the defaulters may be discriminatory against the declarants who made it a point to adhere to the prescribed time schedule. It is also observed that all the declarants while filing declarations under the IDS were well aware of the payment schedule which they were required to follow. The final liability also became crystallised once a certificate in Form No.2 [r.w. Rule 4(3) of the IDS Scheme] was issued by the Pr. CIT/CIT to that effect by mid October, 2016. Thus, the defaulting declarants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5th December, 2016. Such instances clearly refer to the circumstances over which the declarant had absolutely no control. Only, in such cases, the concerned Pr.CIT/CIT is hereby authorized to deal with the applications on a case to case basis after verifying the claim of the declarant through the relevant bank statements/ certificates etc. and consider on merits the condonation in appropriate cases provided the amount payable as per the first installment as well as second installment is paid by 31st March, 2017 by the concerned declarant." 8. Reading of the board Circular, it would clearly emerge that while providing for a limited window, in cases where payments were made through banking channels but the deposit was made by the bank in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was arbitrary or unreasonable so as to be struck down in as opposed to Article 14 of the Constitution of India. In any case, when the legislature frames a special Scheme such as the present one, giving certain concession to the Assesses who had till then not declared their incomes truly and fully, legislature can always lay down its limits of the concession to be granted. 11. As correctly considered by the CBDT in its impugned order dated 16th October, 2017, such concession and excess indulgence in such cases, could have demotivating effect on honest tax payers making regular and prompt tax deposit. 12. We did not find that this Court in its judgment dated 29th August, 2017 has given any directions to the board to decide the matter in a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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