9911796707
TMI Blog1983 (9) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... g as the tax payable. The other half of Rs. 75,000 was paid by the assessee on March 28, 1977. The petitioner has also invested sum of Rs. 15,150 on Government securities as and by way of security. The petitioner has been under the impression that as he has paid the tax as per s. 5(2) read with s. 15(5) of the Central Act (8 of 1976), he is entitled to claim immunity under the said Act without any further obligation on his part. At that stage, the respondent herein by an order dated May 30, 1977, required the petitioner to pay a sum of Rs. 9,000 as interest at 12% per annum on the amount of Rs. 75,000 which the petitioner failed to pay before March 31, 1976, but actually paid on March 28, 1977. The petitioner immediately sent a reply on June 18, 1977, stating that he is not liable to pay any interest on the sum of Rs. 75,000 which he paid on March 28, 1977 under the provisions of the said Act. The respondent, however, by a communication dated November 29, 1977, addressed to the petitioner, informed him about the provisions of the Finance (No. 2) Act of 1977 and also the press note issued by the Central Board of Direct Taxes in connection therewith and calling upon the petitioner to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom April 1, 1976, the liability to pay interest has been imposed on all persons who have not complied with s. 5(1) or 5(2) of the principal Act for the purpose of getting immunity under the provisions of the principal Act and that in the face of the said retrospective amendment, the petitioner, if he wants immunity as contemplated by the provisions of the Act as regards the wealth disclosed in his returns, he has to pay the interest as contemplated under sub-s. (5A) in s. 15. Thus, the substantial question that arises for consideration is as regards the scope and ambit of sub-s. (5A) of s. 15 which was introduced by the Finance (No. 2) Act of 1977 with retrospective effect from April 1, 1976. It is not in dispute between the parties that before the introduction of sub-section (5A) in s. 15, there was no provision for charging interest on the wealth-tax on wealth voluntarily disclosed by the petitioner and the liability for payment of interest was brought in for the first time under sub-s. (5A) of s. 15 if the assessee wants the benefit of the immunity conferred by the provisions of the Act. Therefore, it is unnecessary to deal with the other provisions of the Act dealing with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is sub-s. (5A) by the Finance (No. 2) Act of 1977 and that provision is as follows: " (5A) A declarant (a) who has not paid, in accordance with the provisions of section 5, the wealth-tax chargeable in respect of the net wealth for the assessment year or years for which the declaration has been made; or (b) who has not invested in the securities referred to in sub-section (3) of section 3 within the time specified in sub-section (4) of section 5 the sum specified in sub-section (6); or (c) who has neither so paid such wealth-tax nor so invested such sum, shall, notwithstanding anything contained in sub-section (5), be entitled to the immunity provided under sub-section .(1), if the declarant (i) in a case falling under clause (a), pays before the 1st day of January, 1978 (hereafter in this sub-section referred to as the said date), the amount of such wealth-tax remaining unpaid and also simple interest at the rate of twelve per cent. per annum on the amount of such wealthtax remaining unpaid on the 31st day of March, 1976, from the 1st day of April, 1976, to the date of payment of such wealth-tax ; (ii) in a case falling under clause (b), invests before the said da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talments of wealth-tax by the assessee could be taken to be in accordance with s. 5. Section 5(1) says that the income-tax payable under the Act in respect of the voluntary disclosure of the income shall be paid by the declarant before making the declaration and the declaration shall be accompanied by the proof of payment of such tax. Section 5(2) says that if the Commissioner is satisfied, on an application made in this behalf by the declarant, that the declarant is unable, for good and sufficient reasons, to pay the full amount of income-tax in respect of the voluntarily disclosed income in accordance with sub-s, (1), he may extend the time for payment of the amount which remains unpaid or allow payment thereof in two instalments, one before March 31, 1976, and the other before March 31, 1977. Though s. 5 in terms applies only to the income-tax payable under the Act in respect of the voluntarily disclosed income, that provision also applies to the wealth-tax payable on the disclosed wealth in that, s. 15(5) which says that the immunity provided in sub-s. (1) of s. 15 will not be available to a declarant unless the wealth-tax chargeable in respect of the wealth disclosed is paid b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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