Calcutta HC condones delay of 13 days on due Payment of Third Instalment under Income Declaration Scheme [Read Order]

A Division Bench of the Calcutta High Court condoned a delay of 13 days as there was the due payment of the third instalment under the Income Declaration Scheme. The appellant in the present appeal is Dr Satyajit Bose.

Under the scheme, the third instalment of income tax ought to have been remitted by the appellant not later than 30th September, 2017 but was remitted on 16th October, 2017. Since the scheme did not provide for any extension of time, the authorities could not have reckoned payment of the third instalment to be in compliance with the terms and conditions of the scheme. Interestingly, there was an amendment to the scheme by Finance (No.2) Act of 2019.

By the said amendment, if there was a delay in payment of the amount, the same can be accepted subject to payment of interest provided, such payment is made within the date notified by the Central Government. The said amendment was given retrospective effect from 1^st June, 2016. In terms of the said amendment, notification dated 13^th December, 2019 was issued by the Ministry of Finance by which the payment could be made on or before 31^stJanuary, 2020.

However, it appears that the representation given by the appellant to the Principal Commissioner of Income Tax was not answered and stated to be still pending before the authority. Even much earlier, the Assessing Officer had completed the assessment.

The Single Bench had dismissed the writ petition on the ground that the appellant did not comply with the terms of the scheme within the time permitted. Challenging the said order, the appellant has filed the present appeal.

A Bench consisting of Justice TS Sivagnanam and Justice Hiranmay Bhattacharyya observed that “We are inclined to grant liberty to the appellant to approach the respondent authorities by way of fresh representation in which the amendment made by Finance (No.2) Act of 2019 as well as notification dated 13th December, 2019 can be placed before the concerned authority. “

“Added to the fact that the third instalment had been paid by the appellant well before the cut off date together with interest and if such representation is given to the appropriate authority, the same shall be considered” the Court said.

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