2023 (1) TMI 134 - SCH - Income Tax

Benefit of the Income Declaration Scheme of 2016 (IDS) - petitioner submits that the case is actually covered as in terms of the 2 Notification dated 13.12.2019 of the Ministry of Finance that all such people who defaulted in making payment were permitted to deposit the amount with 12 per cent interest. That amount with interest stands deposited in pursuance to order dated 22.04.2019 albeit before this Court and has being kept in an interest bearing deposit - HELD THAT - Respondents sought a short accommodation to obtain instructions. Today further time is sought. The request is declined. We put a question to learned counsel for the respondents that at least to the extent a notification has been issued, there cannot be further instructions sought. He admits that notification has been issued. In view thereof, the appellant is entitled to the relief in terms of the notification and since the amount stands already deposited in the Court along with interest, the said amount with any further accrued interest on the same be remitted to the respondents, particulars of which will be given by the learned counsel for the respondents. The consequence would be that the appellant would be entitled to the benefit of the Income Declaration Scheme of 2016 (IDS).

Summary

Issues:
1. Delay in appearance by respondents.
2. Applicability of Ministry of Finance notification.
3. Request for further time by respondents.
4. Entitlement to relief under Income Declaration Scheme of 2016.

Delay in Appearance by Respondents:
The Supreme Court noted that the respondents appeared three years after the notice was issued in the case. Despite seeking further time to obtain instructions, the Court declined the request, emphasizing that since a notification had already been issued by the Ministry of Finance, no further instructions were necessary. The Court held that the appellant was entitled to relief in accordance with the notification, and as the amount had already been deposited in court with interest, it should be remitted to the respondents.

Applicability of Ministry of Finance Notification:
The petitioner's counsel argued that the case fell under a notification dated 13.12.2019 of the Ministry of Finance, allowing defaulters to deposit the amount with interest. It was highlighted that the amount, along with interest, had been deposited in court pursuant to an earlier order. The respondents' counsel requested time to obtain instructions, but the Court ruled that since a notification had been issued, no further instructions were required. Consequently, the appellant was deemed entitled to the benefits of the Income Declaration Scheme of 2016.

Request for Further Time by Respondents:
The respondents' counsel initially sought a short accommodation to obtain instructions, which was granted. However, when further time was requested, the Court declined the extension. The Court pointed out that since a relevant notification had already been issued, additional instructions were unnecessary. The respondents were directed to provide particulars for remittance of the deposited amount with any further accrued interest to the appellant.

Entitlement to Relief under Income Declaration Scheme of 2016:
As a result of the Court's findings regarding the applicability of the Ministry of Finance notification and the amount already deposited in court, the appellant was declared entitled to the benefits of the Income Declaration Scheme of 2016. Consequently, the civil appeal was allowed to the extent mentioned in the judgment.