2003 (7) TMI 69 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, submission of the return under the amnesty scheme of 1985-86 without pre-depositing the tax, the assessee is entitled to get benefit of the amnesty scheme of 1985-86? - if the assessee claims that his return is to be treated under the amnesty scheme it is incumbent upon him to show to the assessing authority that the tax has been paid. If the tax is not paid then the assessing authority has no jurisdiction to accept the return under the amnesty scheme. - The decisions of the assessing authority, the appellate authority and the Tribunal are in accordance with law and do not require any interference by this court.

Summary

Issues:
1. Whether submission of the return under the amnesty scheme of 1985-86 without pre-depositing the tax entitles the assessee to benefit from the scheme?

Analysis:
The case involved a situation where a search conducted by the Central Bureau of Investigation (CBI) resulted in the seizure of cash and fixed deposit receipts from the assessee's residence. Following the search, the assessee filed a return of income under the amnesty scheme of 1985-86, requesting the taxing authority to treat it as such. However, the Assessing Officer rejected the return under the amnesty scheme as the tax had not been pre-deposited, and the challan for tax payment was not enclosed. The Income-tax Appellate Tribunal held that the benefit under the amnesty scheme could only be availed after full payment of tax, with the challan attached to the return. The Tribunal concluded that since the assessee had not paid any tax at the time of filing the return, it could not be treated under the amnesty scheme. The appellant contended that the tax should have been adjusted from the cash seized by the CBI, but the court found no provision in the amnesty scheme allowing the assessing authority to relax the requirement of tax payment at the time of return submission. The court emphasized that compliance with the conditions specified in the amnesty scheme was essential for availing its benefits, including payment of tax along with the return.

The court further noted that the assessing authority, appellate authority, and the Tribunal had made decisions in accordance with the law, without any need for interference by the court. It was highlighted that the amnesty scheme required the assessee to demonstrate payment of tax to be eligible for its benefits, and in the absence of such payment, the assessing authority could not accept the return under the scheme. Ultimately, the court upheld the decisions of the lower authorities, affirming that the assessing authority was not empowered to relax the condition of tax deposit under the amnesty scheme. The court's judgment clarified that the onus was on the assessee to prove tax payment for availing the benefits of the amnesty scheme, and failure to do so would render the return ineligible for treatment under the scheme.