2018 (8) TMI 721 - HC - Income Tax

Benefit of Income Declaration Scheme, 2016 - Review petition - earlier HC dismissed the petition of the assessee on the ground that, although the order dated 24.10.2016 does not refer to prosecution under Section 420 of IPC but of Corruption of Prevention Act, but since prosecution is going on against the petitioner for an offence which comes under Chapter XVII of the IPC, petitioner is not liable to be granted benefit of the said Scheme. Now a review application has been filed by the applicant/petitioner for reviewing the order dated 02.05.2018 on ground that certain facts could not be brought before this Court at the relevant time, such as, there is a scheme called Income Declaration Scheme, 2016 , where an assessee can declare his undisclosed assets/income. This cannot be a ground for review. Under Order XLVII Rule 1 of the Code of Civil Procedure, grounds for review are very limited and such grounds are not available with the applicant/petitioner. Decided against the assessee.

Summary

Issues:
1. Delay Condonation Application
2. Eligibility under Income Declaration Scheme, 2016
3. Prosecution under Chapter IX or Chapter XVII of IPC
4. Review Application Grounds

Delay Condonation Application:
The petitioner filed a Review application along with a Delay Condonation application, seeking condonation of delay. The court found the grounds mentioned in the affidavit to be bona fide and sufficient for condonation of delay. Thus, the Delay Condonation application was allowed, and the delay was condoned.

Eligibility under Income Declaration Scheme, 2016:
The petitioner sought benefit under the Income Declaration Scheme, 2016, which allowed disclosure of undisclosed assets/income. However, the Scheme excluded persons facing prosecution for offences under Chapter IX or Chapter XVII of the IPC, among others. The petitioner's claim was denied based on a prosecution initiated under the Prevention of Corruption Act, even though charges were framed under IPC sections. The court held that since the petitioner faced prosecution for an offence under Chapter XVII of the IPC, they were not eligible for the Scheme.

Prosecution under Chapter IX or Chapter XVII of IPC:
The court emphasized that the Scheme precluded individuals facing prosecution for offences under Chapter IX or Chapter XVII of the IPC from availing its benefits. Despite the specific exclusion, the petitioner's claim was denied due to ongoing prosecution under IPC sections falling under Chapter XVII. This led to the dismissal of the writ petition and subsequent special appeal.

Review Application Grounds:
Following the dismissal of the special appeal, the petitioner filed a review application citing new facts that were not presented earlier. However, the court dismissed the review application, stating that the grounds for review under Order XLVII Rule 1 of the Code of Civil Procedure are limited, and the grounds presented did not warrant a review. Consequently, the review application was dismissed.