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TMI Blog2004 (5) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... rect the respondent to accept the declaration as fully satisfied and to give the relief to the petitioner as per the VDI Scheme. - - - - - Dated:- 18-5-2004 - Judge(s) : G. SIVARAJAN. JUDGMENT G. Sivarajan J.- The petitioner is an advocate practising at Thiruvananthapuram. He is an assessee to income-tax. He submitted a return under the Voluntary Disclosure of Income Scheme, 1997, on December 31, 1997, declaring a total income of Rs. 4,83,000 and the tax payable thereon was Rs. 1,44,900. The petitioner did not remit the tax due along with the declaration. However, he had paid the tax together with interest due thereon for the period from the date of declaration till the date of payment on March 30, 1998. It so happened that the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of sub-section (2) thereof of the VDI Scheme which according to counsel will settle the issue. Counsel pointed out that section 67(1) of the Scheme provided for payment of tax due as per the declaration filed within three months from the date of filing the declaration together with interest due thereon from the date of filing of the declaration till payment before the expiry of three months from the date of declaration. Counsel, however submits that even if there is some delay in payment of the interest on the tax due as per the declaration within the time specified in sub-section (1) of section 67 of the Scheme, such delay or non-payment of interest on the tax due cannot have the effect of nullifying the declaration. Counsel submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme. I have carefully considered the rival contentions with reference to the relevant provisions under sections 66 and 67 of the Scheme particularly with reference to sub-section (2) of section 67 and the decision of the Supreme Court referred to above. Here, it must be noted that in Hemalatha Gargya's case [2003] 259 ITR 1 the Supreme Court was concerned with a situation where the assessees had not paid the tax within the time prescribed either under section 66 or within the extended time under section 67(1) of the Scheme. They offered various explanations in the matter. Different High Courts have taken conflicting views in the matter, the Revenue relied on the decisions in their favour and contended that the language of section 67(2) ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of section 67 of the Scheme which reads as follows: "67. Interest payable by declarant.-(1) Notwithstanding anything contained in section 66, the declarant may file a declaration without paving the tax under that section and the declarant may file the declaration and the declarant may pay the tax within three months from the date of filing of the declaration with simple interest at the rate of two per cent, for every month or part of a month comprised in the period beginning from the date of filing the declaration and ending on the date of payment of such tax and file the proof of such payment within the said period of three months. (2) If the declarant fails to pay the tax in respect of the voluntarily disclosed income befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided for. As already noted section 67(1) refers to tax and interest thereon payable within the date of three months from the date of filing the declaration. But sub-section (2) only refers to the non-payment of the tax within three months and does not refer to non-payment of interest. Though the Department has got a stand that the tax will take interest also having regard to the fact that the tax and interest was separately treated in section 67(1) and the further fact that tax alone is referred to in section 67(2), I am of the view that the tax mentioned in sub-section (2) cannot take interest also. Of course, no outer time-limit for payment of the interest is provided under section 67(1) in the case of non-payment of interest along with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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