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TMI Blog2022 (11) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... RGUMENTS ON BEHALF OF THE PETITIONER 2. Learned Counsel for the Petitioners stated that Petitioners had filed Form 1 as well as Form 2 within the time stipulated as per the provisions of VSV Act on 04th March, 2021 and Form No. 3 was issued to Petitioners on 07th May, 2021 and 22nd June, 2021. He stated that the Petitioner Companies were unable to pay the disputed amount as determined by Respondents in Form 3 prior to the last date, namely, 31st October, 2021 due to death of a Director of the companies, who was looking after the taxation and other affairs on 20th July, 2021. 3. Learned Counsel for the Petitioners stated that the delay in payment was not intentional and the Petitioners always intended to settle the dispute with the Income tax department and avail the benefit of VSV Act. He contended that not condoning the delay in payment would be against the very object and purpose of the Scheme as the object of the scheme is to reduce litigation and collect revenue. 4. Learned Counsel for Petitioners submitted that the Rajasthan High Court in similar facts in Agroha Electronics Through its Proprietor Vs. Union of India Through Secretary, Ministry of Finance (Department of Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of this Act and grant a certificate to the declarant containing particulars of the tax arrear and the amount payable after such determination, in such form as may be prescribed. (2) The declarant shall pay the amount determined under sub-section (1) within fifteen days of the date of receipt of the certificate and intimate the details of such payment to the designated authority in the prescribed form and thereupon the designated authority shall pass an order stating that the declarant has paid the amount." 6. He submitted that the Supreme Court in Hemalatha Gargya Vs. Commissioner of Income Tax, A.P. and Anr., (2003) 9 SCC 510 while dealing with a pari materia provision, namely, Section 67(2) of Voluntary Disclosure of Income Scheme, 1997 ('VDI Scheme'), has held as under:- "9. The use of the word "shall" in a statute, ordinarily speaking, means that the statutory provision is mandatory. It is construed as such unless there is something in the context in which the word is used which would justify a departure from this meaning. There is nothing in the language of the provisions of the Scheme which would justify such a departure. On the other hand the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituation, the provisions of law are to be mandatorily applied and relief on equitable consideration cannot be granted. However, in extraordinary and exceptional situation like death and Covid, the non-grant of relief on equitable consideration would be irrational. COURT'S REASONING IN RECOGNITION OF INTERMITTENT LOCKDOWN ON ACCOUNT OF THE COVID-19 PANDEMIC THE SCHEME WAS AMENDED SEVERAL TIMES TO EXTEND THE DEADLINE FOR PAYMENT. MOREOVER, DEATH OF THE MANAGING DIRECTOR OF THE COMPANIES WAS AN EXTRAORDINARY AND EXCEPTIONAL EVENT. 11. Having heard learned counsel for the parties, this Court is of the view that the timeline to pay under the VSV was not mandatory as the last date stipulated under the VSV Act (3 of 2020) was extended by virtue of Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020. A tabular chart showing the extension of the deadlines to pay under the VSV Scheme is reproduced hereinbelow:- "CHART FOR VIVAD SE VISHWAS SCHEME EXTENSIONS S.No. Notification No. Due date on or before which declaration is to be filed Date on or before which amount shall be payable as per third column of Table to section 3 Date on or before which amount shall be payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me which was concealed by the assessees and at the same time, provided them with immunity from penalty and prosecution under the provisions of the Act for not voluntarily disclosing the income chargeable to tax. Hence, the VDI Scheme was in the nature of an amnesty scheme which provided a window to the assessees to come clean without any adverse consequences under the provisions of the Act. It was in this context that the Apex Court observed that "....Where the assessees seek to claim the benefit under the statutory scheme they are bound to comply with the conditions under which the benefit is granted there is no application of any equitable consideration when the provisions of scheme are stated in such plain language". 15. In fact, while interpreting a similar scheme "Kar Vivad Samadhan Scheme", the Supreme Court in Commissioner of Income Tax, Rajkot Versus Shatrusailya Digvijaysingh Jadeja, 2005 (9) TMI 362 SC held that the object of the said Scheme was to settle tax arrears locked in litigation at a substantial discount and it provided that any tax arrears could be settled by paying the prescribed amount of tax arrears, and it offered benefits and immunities from penalty and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave not to do complete justice". 19. One of us (Manmohan, J) in Siddharth International Public School v. Motor Accident Claim Tribunal, (2016) SCC OnLine Del 4797, para 41 has held, "it is settled law that this Court has extremely broad jurisdiction under Article 226 of the Constitution and under the said Article it can pass whatever orders are necessary for doing equity and justice. The Supreme Court in N.S. Mirajkar v. State of Maharashtra, 1966 3 SCR 744 has held that "unlike a inferior court, in respect of a High Court, which is also a Court of Record, it is assumed that every action is within its jurisdiction, unless expressly shown otherwise". 20. Consequently, the power of the High Court under Article 226 of the Constitution of India to grant relief in extraordinary and exceptional circumstances cannot be taken away or curtailed by any legislation. 21. In fact, the Supreme Court in Dal Chandra Rastogi v. CBDT (2019) 104 taxmann.com 341 (SC) wherein the assessee had filed a declaration of undisclosed income under the Income Declaration Scheme, 2016 and had failed to pay the third installment of the remaining 50 per cent of tax, surcharge and penalty permitted the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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