Income Declaration Scheme adjustment issue: interim permission granted to deposit computed amount and seek provisional credit for prior tax payments.

Pending final adjudication under the Income Declaration Scheme, 2016, the Court permitted the petitioner, for interim protection, to deposit the amount it considered payable and to seek provisional adjustment of earlier tax deducted at source and advance tax payments. The dispute concerned the interaction between Sections 184 and 187 of the Scheme, including the effect of the non-obstante clause in Section 184(1). The permission was expressly provisional and subject to the final determination of whether those prior deposits were adjustable under the Scheme.

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Issues: Whether, pending final adjudication under the Income Declaration Scheme, 2016, the petitioner could be permitted to deposit the amount computed by it and claim adjustment of amounts earlier deposited towards tax deducted at source and advance tax.

Analysis: The dispute turned on the petitioner's construction of Sections 184 and 187 of the Income Declaration Scheme, 2016 and the respondents' reliance on the non-obstante clause in Section 184(1). For the limited purpose of interim protection, the Court allowed the petitioner to deposit the amount it considered payable, i.e. 25% of the net amount under the Scheme. The permission was expressly made provisional and subject to the final decision on whether prior deposits towards tax deducted at source and advance tax were adjustable under the Scheme.

Conclusion: Interim relief was granted in favour of the petitioner, permitting deposit on the petitioner's computation and provisional adjustment of earlier tax payments, subject to the final outcome.

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