1999 (7) TMI 14 - HC - Income Tax

Court Denies Tax Refund Due to Late Payment; Emphasizes Statutory Compliance

Smt. Atamjit Singh Versus Commissioner Of Income-Tax

Smt. Atamjit Singh Versus Commissioner Of Income-Tax - [2001] 247 ITR 356, 166 CTR 414, 114 TAXMANN 120 Issues involved: The main issue in this case is whether the Commissioner can condone the delay in payment of tax under the Voluntary Disclosure of Income Scheme, 1997. Judgment Details: The Voluntary Disclosure of Income Scheme, 1997 allowed for disclosure of undisclosed income between July 1, 1997, and December 31, 1997. The petitioner declared an income but failed to pay the tax within the stipulated time frame. The Commissioner communicated that the declaration would be deemed never made due to late payment. The petitioner sought relief to quash the communication and have the declaration accepted or refund the amount paid. The petitioner argued that the delay in payment was due to a genuine mistake and should be condoned. However, the court held that the statutory provisions were clear and unambiguous. The law required payment within a specific timeframe, and no provision existed for condonation of delay. The court emphasized that when a law mandates a specific action for a benefit, it must be strictly adhered to. The court also discussed precedents where payment delays were condoned due to exceptional circumstances. However, in this case, the court found no grounds for such leniency as the law was explicit. The court rejected the petitioner's argument that the amount paid should be refunded, stating that the declaration being deemed invalid meant the tax and interest were not owed. The petitioner was advised to apply for a refund, which would be considered in accordance with the law. In conclusion, the court disposed of the writ petition with the above observations, directing the parties to bear their respective costs.