Condonation of delay under the Income Declaration Scheme must be examined on merits under CBDT guidance and statutory power.

Delay in payment of the first instalment under the Income Declaration Scheme, 2016 had to be examined on its own merits, and the request for condonation could not be rejected at the threshold. The Bombay HC noted that CBDT instructions provided limited exceptions for technical difficulties and circumstances beyond the declarant's control, and that the authorities were required to apply the relevant circular/clarification along with the statutory power under Section 119(2) of the Income-tax Act, 1961. The application was directed to be considered in accordance with law within six weeks.

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Issues: Whether the petitioner's application for condonation of delay in payment of the first instalment under the Income Declaration Scheme, 2016 was required to be considered in accordance with law and the CBDT's circular/clarification.

Analysis: The petition concerned delay in payment of the first instalment under the Income Declaration Scheme, 2016. The Court noted the CBDT's instructions dealing with cases of technical difficulties and the limited exceptions carved out for circumstances beyond the declarant's control. It held that the petitioner's request could not be refused at the threshold and that the authorities were required to examine the application on its own merits, keeping in view the applicable Board circular and the statutory power under Section 119(2) of the Income-tax Act, 1961.

Conclusion: The application for condonation of delay was directed to be considered in accordance with law and on its own merits within six weeks.

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