Court denies late tax payment request under Income Declaration Scheme, 2016 emphasizing timely compliance

The court dismissed the petition seeking direction to accept tax payment after the specified date under the Income Declaration Scheme, 2016. The court emphasized the voluntary nature of the Scheme and the importance of timely compliance with specified payment dates. It held that there was no provision in the Scheme for accepting late payments and declined to intervene using its extraordinary writ jurisdiction. The judgment underscored the necessity of adhering strictly to the Scheme's terms and conditions, reinforcing the significance of following statutory schemes and denying relief for late tax payments beyond prescribed deadlines.

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Issues:
Petition seeking direction to accept tax payment after specified date under Income Declaration Scheme, 2016.

Analysis:
The petitioner filed a declaration under the Income Declaration Scheme, 2016, disclosing undisclosed income and tax payable. The Scheme required payment of 25% of tax by specified dates. The petitioner failed to pay the tax before the deadline, citing demonetization as the reason for non-payment. The petitioner sought a direction to the Revenue to accept the delayed payment. The Court examined if the Scheme allowed acceptance of late payments but found no provision for it. The Court emphasized that authorities must adhere to the Scheme's provisions as per the Finance Act, 2016.

The Court highlighted that the Scheme was optional, with known payment deadlines, providing an opportunity for non-disclosing parties to rectify their tax compliance. Considering these factors, the Court declined to intervene using its extraordinary writ jurisdiction. Ultimately, the Court dismissed the petition, emphasizing the importance of compliance with the Scheme's terms and conditions.

In conclusion, the Court's decision upheld the strict adherence to the provisions of the Income Declaration Scheme, 2016, emphasizing the voluntary nature of the Scheme and the necessity for timely compliance with the specified payment dates. The judgment reinforced the importance of following statutory schemes and declined to grant relief for late tax payments beyond the Scheme's prescribed deadlines.

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