Liberal construction of tax amnesty scheme preserves declaration despite short, explained delay in payment.

A declaration under the Voluntary Disclosure of Income Scheme, 1997 was held not to become non-est because tax and interest were deposited three days late. The Court construed the payment period flexibly, noting that the declarant's accident and hospitalization explained the delay, the delay was not disputed on facts, and the Revenue suffered no loss because interest for the delayed period was paid. It also applied the principle that taxing provisions may be read liberally where the language permits, in favour of the assessee. On those facts, the declaration remained valid and the Commissioner's order was unsustainable.

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Issues: Whether the petitioner's declaration under the Voluntary Disclosure of Income Scheme, 1997 could be treated as non-est for a three-day delay in depositing the tax and interest, and whether the period for payment could be construed with some flexibility in the circumstances.

Analysis: The scheme permitted declaration up to 31 December 1997 and payment of tax within three months thereafter. The Court held that the last date for payment, along with interest, would expire on 31 March 1998 and that the relevant provision did not require such an inflexible construction as to defeat the declaration for a short delay caused by circumstances beyond the declarant's control. The petitioner's accident and hospitalization were accepted, the delay was not disputed on facts, and the interest payable for the period was also deposited, so no loss was caused to the Revenue. The Court also relied on the principle that taxing provisions are to be construed liberally where possible in favour of the assessee.

Conclusion: The declaration could not be treated as non-est on the facts of the case, and the impugned order was unsustainable.

Final Conclusion: The petitioner obtained relief against the Commissioner's order, and the declaration under the scheme was restored to validity.

Ratio Decidendi: A short delay in statutory payment under a tax amnesty scheme may not vitiate the declaration where the provision is capable of liberal construction, the delay is explained by circumstances beyond control, and the Revenue suffers no loss.

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