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Issues involved: Challenge to order rejecting declaration under Voluntary Disclosure of Income Scheme, 1997 u/s 67(2) of the Finance Act, 1997 due to delay in tax payment.
Summary: The High Court of Punjab and Haryana addressed two Writ Petitions concerning the rejection of a declaration under the Voluntary Disclosure of Income Scheme, 1997. The petitioner, a partner in a timber business, declared undisclosed income but failed to pay the tax within the stipulated time frame. The Commissioner rejected the declaration based on section 67(2) of the Finance Act, deeming it never made under the scheme. The key issue was whether the Commissioner had the power to condone the delay in tax payment. The Court held that the Commissioner was justified in rejecting the declaration as the scheme did not provide for condonation of delays in tax payment. Section 67(2) of the Finance Act mandated that failure to pay tax within three months rendered the declaration invalid. The Court emphasized strict adherence to the statutory provisions of the scheme, which aimed to incentivize tax compliance. While a previous judgment suggested the Commissioner could condone delays, the Court disagreed, stating that the date of actual declaration filing determined the three-month tax payment period. The petitioner's failure to provide a satisfactory explanation for the delay further supported the rejection of the declaration. Ultimately, the Court dismissed the writ petitions, upholding the Commissioner's decision to reject the declaration under the Voluntary Disclosure of Income Scheme, 1997.
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