Case Note & Summary
The petitioner, Sajan Enterprises Miraj, filed a declaration under the Voluntary Disclosure Scheme, 1997 on 25th December 1997, disclosing an income of Rs.10 lakhs. Under the scheme, the entire tax due was required to be paid within three months from the date of filing the declaration, i.e., by 25th March 1998. The petitioner made part payments: Rs.51,000 on 29th January 1998, Rs.52,000 on 27th February 1998, Rs.2,65,000 on 26th March 1998, and Rs.1,000 on 30th March 1998, totalling Rs.3,69,000. However, the entire tax liability was not paid within the three-month period. The petitioner sought a writ to compel the Commissioner to accept the declaration and issue a certificate. The court examined Sections 65 and 67 of the scheme, which mandate payment within three months and provide no discretion to extend time. The court held that the scheme requires strict compliance and since the payment was made beyond the stipulated period, the declaration cannot be accepted. The petition was dismissed with no order as to costs.
Headnote
A) Voluntary Disclosure Scheme - Time Limit for Payment - Section 65 of the Voluntary Disclosure Scheme, 1997 - The petitioner filed a declaration under the scheme on 25th December 1997 disclosing income of Rs.10 lakhs but paid the entire tax in installments beyond the three-month period ending on 25th March 1998. The court held that the scheme requires strict compliance with the time limit and the Commissioner has no power to extend the period. Since the payment was made after the expiry of three months, the declaration cannot be accepted and the petition was dismissed. (Paras 2-4)
Issue of Consideration
Whether the petitioner is entitled to a declaration under the Voluntary Disclosure Scheme, 1997, when the entire tax liability was not paid within the stipulated period of three months from the date of filing the declaration.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Voluntary Disclosure Scheme
- 1997
- Section 65
- Section 67
- time limit for payment
- strict compliance
- no extension of time
Case Details
2005 LawText (BOM) (05) 211
Writ petition NO. 4132 of 1999
S. Radhakrishnan, A. S. Aguiar
Mr. K. B. Bhujale with Pramod Vaidya for Petitioners, Mr. A. S. Rao for Respondents
The Commissioner of Income-tax & ors.
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Nature of Litigation
Writ petition challenging the rejection of declaration under Voluntary Disclosure Scheme, 1997 due to late payment of tax.
Remedy Sought
Petitioner sought a writ to compel the Commissioner to accept the declaration and issue a certificate under the scheme.
Filing Reason
The petitioner's declaration under the Voluntary Disclosure Scheme, 1997 was not accepted because the entire tax was not paid within the three-month period.
Issues
Whether the petitioner is entitled to a declaration under the Voluntary Disclosure Scheme, 1997 when the entire tax liability was not paid within the stipulated period of three months from the date of filing the declaration.
Submissions/Arguments
Petitioner argued that the payments were made and sought acceptance of the declaration.
Respondent contended that the payment was made beyond the three-month period and the scheme does not permit extension.
Ratio Decidendi
The Voluntary Disclosure Scheme, 1997 requires strict compliance with the time limit for payment of tax. The Commissioner has no power to extend the period. Since the entire tax was not paid within three months from the date of filing the declaration, the declaration cannot be accepted.
Judgment Excerpts
The basic dispute in the above petition is that the entire tax liability was not paid within a period of three months as contemplated under the scheme.
The scheme requires strict compliance with the time limit and the Commissioner has no power to extend the period.
Procedural History
The petitioner filed a declaration under the Voluntary Disclosure Scheme, 1997 on 25th December 1997. The tax was paid in installments, with the last payment on 30th March 1998, beyond the three-month period. The Commissioner did not accept the declaration. The petitioner then filed the present writ petition in 1999.
Acts & Sections
- Voluntary Disclosure Scheme, 1997: 65, 67
