Voluntary disclosure scheme relief may survive a brief tax payment delay where discretion is exercised lawfully.

A declarant under the Voluntary Disclosure of Income Scheme, 1997 who filed the declaration within the scheme period but paid the tax three days after the three-month limit was held not to be disentitled from the scheme benefit. The Court treated the scheme as special in nature and noted that the learned single Judge's discretionary extension was not contrary to the express provisions of law. Appellate interference was justified only if that discretion was shown to be irrational or illegal, and no such defect was demonstrated.

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Issues: Whether a declarant under the Voluntary Disclosure of Income Scheme, 1997 who paid the tax three days after the expiry of the three-month period was entitled to the benefit of the scheme.

Analysis: The declaration was filed within the scheme period, and the tax payable under section 66 of the Finance Act, 1997 was paid only three days after the prescribed three-month period. The Court noted the special nature of the scheme, but held that the learned single Judge's exercise of discretion in extending the benefit was not contrary to the express provisions of law. Interference in appeal was warranted only if the discretion had been exercised irrationally or illegally, which was not shown.

Conclusion: The delay did not disentitle the declarant from the benefit of the scheme, and the appeal was rejected.

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