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TMI Blog2019 (10) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... at he had failed to pay the tax, surcharge and penalty on the undisclosed income declared by him before the due date, i.e., 30.09.2017. A consequential direction is sought to the Income Tax authorities to accept and act upon the said declaration. 2. The petitioner filed the subject declaration under the IDS in Form 1 on 30.06.2016 for the assessment years 2010-11 to 2015-16 declaring undisclosed income of Rs. 40,98,706/-. The IDS was promulgated under Sections 184 and 185 of the Finance Act, 2016, enabling an assessee to pay tax @ 30% on undisclosed income along with surcharge and penalty @ 25% on the tax payable. As per Section 187 thereof, read with Notification No.S.O.2476(E) dated 20.07.2016, the tax, surcharge and penalty were to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to her, there was no provision in the IDS enabling credit being given to prepaid taxes. She asserted that the advance tax paid by the petitioner could not be adjusted against the tax, surcharge and penalty payable under the IDS. She pointed out that the petitioner had not filed his return of income for the assessment years 2010-11 to 2015-16 and therefore, the advance tax paid by him could not be given credit while computing his liability in respect of the undisclosed income declared by him under the IDS. She relied upon Section 219 of the Income Tax Act, 1961, which provides for credit for advance tax being given in the case of regular assessment, which would be either under Section 143(3) or Section 144 thereof. She asserted that the adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enior standing counsel appearing for the respondents. 8. At the outset, we may note that there is no dispute as regards the credit claimed by the petitioner towards TDS. In this regard, the Central Board of Direct Taxes (CBDT), Ministry of Finance, Government of India, itself issued Circular No.25 of 2016 dated 30.06.2016, furnishing clarifications on the IDS, and Question No.4 thereunder was as to whether credit for TDS, if any, in respect of the income declared should be allowed. The answer to this was in the positive and to the effect that credit for TDS should be allowed in those cases where the related income was declared under the IDS and credit for the tax had not already been claimed in the return of income filed for any assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... now improve upon the case by supplementing a new ground which does not even find mention in the impugned proceedings dated 06.02.2018 (see MOHINDER SINGH GILL V/s. THE CHIEF ELECTION COMMISSIONER AIR 1978 SC 851 : 1978 SCR (3) 272). 10. We may also note that it is not the case of the Income Tax authorities that there was any regular assessment for the assessment year 2013-14, whereby the petitioner could have paid tax under Minor Head - 400. When there was no such regular assessment, the payment made by the petitioner cannot be appropriated under that head merely because he made a mistake in mentioning the number. The contention of the Income Tax authorities in this regard is therefore liable to be rejected even on merits. 11. Treating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n were processed in accordance with the scheme. SLP (Civil) Diary No.33000/2017 filed by the Income Tax authorities against the aforestated judgment of the Delhi High Court was dismissed by the Supreme Court on 29.01.2018. 13. We are in respectful agreement with the view taken by the Delhi High Court. Once the TDS relevant for the period covered by the declaration filed under the IDS is given credit as per the CBDT's clarification itself, there is no logic as to why advance tax paid for the very same period, which has not been given credit to earlier, should not be adjusted against the amount payable under the IDS. In the case on hand, the declaration of the petitioner pertains to the assessment years 2010-11 to 2015-16. The advance tax o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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