Case Note & Summary
The petitioner, Sitaram Jayramdas Shethi Miraj, filed a declaration under the Voluntary Disclosure Scheme 1997 on 25th December 1997, disclosing an income of Rs.8,00,000. Under Section 67 of the Finance Act, 1997, the entire tax due was required to be paid within three months from the date of filing the declaration. The petitioner made partial payments: Rs.51,000 on 29th January 1998, Rs.52,000 on 27th February 1998, Rs.1,90,000 on 26th March 1998, and Rs.1,000 on 30th March 1998, totaling Rs.1,03,000. However, these payments were made beyond the three-month period ending on 25th March 1998. The petitioner sought a writ to compel the Commissioner to accept the delayed payments and treat the declaration as valid. The court examined Sections 65 and 67 of the scheme and noted that the scheme does not provide any power to the Commissioner to extend the time for payment. The petitioner's counsel fairly conceded that the payments were made beyond the stipulated period. The court held that the provisions of the scheme must be strictly complied with, and since the tax was not paid within three months, the declaration became invalid. The petition was dismissed with no order as to costs.
Headnote
A) Taxation - Voluntary Disclosure Scheme - Time Limit for Payment - Section 67 of the Finance Act, 1997 - The petitioner filed a declaration under the Voluntary Disclosure Scheme 1997 disclosing income of Rs.8,00,000 but paid the tax in installments beyond the three-month period prescribed under Section 67. The court held that the scheme does not confer any power on the Commissioner to extend the time for payment, and the declaration becomes invalid if tax is not paid within the stipulated period. (Paras 2-4) B) Taxation - Voluntary Disclosure Scheme - Strict Compliance - Section 67 of the Finance Act, 1997 - The court emphasized that the provisions of the scheme must be strictly complied with, and the Commissioner has no discretion to condone delay in payment. The petition was dismissed as the payments were made beyond the three-month period. (Paras 3-4)
Issue of Consideration
Whether the Commissioner has the power to extend the time for payment of tax under the Voluntary Disclosure Scheme 1997 beyond the three-month period stipulated in Section 67 of the Finance Act, 1997.
Final Decision
The petition is dismissed. No order as to costs.
Law Points
- Voluntary Disclosure Scheme 1997
- Section 67 Finance Act 1997
- strict compliance
- time limit
- no power to extend
