9911796707
TMI Blog1999 (3) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... This deals with voluntary disclosure of wealth. The petitioner submits that the voluntary disclosure in the present case was made in terms of section 14. He had paid the tax on the disclosed income in two phases, i.e., 50 per cent. before 31st of March, 1976, and 50 per cent. by 31st March, 1977. It is submitted once that the payment was made in terms of section 14, then the Revenue was not justified in levying interest. It is this levy of interest which is the subject-matter of challenge in this petition. Learned counsel appearing for the respondent-income-tax authorities submits that the interest was payable and this interest was to be paid in terms of section 6 of the Act. It is submitted that earlier an Ordinance in the shape of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen interest was to be payable. It may further be seen that sub-section (5A) was inserted in section 14. It was provided that a declarant not paying the tax in accordance with section 5 would continue to enjoy the immunity provided he complied with the statutory requirements by the 1st day of January 1978. Before the submissions made by learned counsel for the parties are dealt with, it would be apt to notice section 5, section 6, section 14(5) and (5A). These read as under: "5. Time for payment of income-tax and for investment in notified securities.--(1) Subject to the provisions of sub-section (2), the income-tax payable under this Act in respect of the voluntarily disclosed income shall be paid by the declarant before making the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning unpaid from the 1st day of April, 1976, to the date of payment and the provisions of the Income-tax Act and the rules made thereunder shall, so far as may be, apply as if the interest payable under this section were interest payable under sub-section (2) of section 220 of that Act. 14. (5) The immunity provided under sub-section (1) shall not be available to the declarant unless the tax chargeable in respect of the income of the previous year or years for which the declaration has been made is paid by the declarant in accordance with the provisions of section 5. 14. (5A) A declarant who has not paid, in accordance with the provisions of section 5, the tax chargeable in respect of the income of the previous year or years for which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of sub-section (5A) is concerned, additional benefit was given. Immunity was provided to those assessees who made the payment by the 1st day of January, 1978. This was an additional benefit allowed. Therefore, to say that section 6 is not applicable to section 14, is an argument which cannot be accepted. Learned counsel appearing for the petitioner has placed reliance on a circular issued by the Central Board of Direct Taxes. It is submitted that the question as to how the cases of those declarants who had paid the full amount but not in conformity with sections 5(2) of the Act was the subject-matter of the circular. The decision taken was that even if the procedure laid down in section 5(2) of the Act was not adhered to in strict te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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