Court remands non-payment issue under Income Tax Declaration Scheme for merit-based assessment. Review required per Notification.

The Court remanded the issue of non-payment of the third instalment under the Income Tax Declaration Scheme, 2016 to the Principal Commissioner of Income Tax for a merit-based assessment within six weeks from the date of the order's communication. The Court emphasized the need for the Revenue Authority to review the petitioner's case in light of the Notification dated 13th December, 2019, which allowed for an extension of time for payment with retrospective effect until 31st January, 2020, for those who had declared income but not paid by the due date.

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Issues:
Non-payment of third instalment under the Income Tax Declaration Scheme, 2016; Extension of time for payment under Notification dated 13th December, 2019; Retrospective effect of the Notification; Consideration of the petitioner's request for extension; Remand of the issue to the Principal Commissioner of Income Tax.

Analysis:
The petitioner failed to pay the third instalment under the Income Tax Declaration Scheme, 2016 by the due date of 30th September, 2017, citing illness as the reason for the delay. Despite acknowledging the petitioner's income declaration, the Revenue Authority demanded additional tax, surcharge, and penalty in three instalments. The petitioner paid the first two instalments but could not pay the third instalment on time due to illness. A representation seeking an extension of time to pay the third instalment was submitted to the Revenue Authority on 4th December, 2017, which remained undecided, leading to the filing of a writ petition.

The petitioner relied on the Notification dated 13th December, 2019, which extended the payment period for declarations made under Section 183 of the Finance Act, 2016 until 31st January, 2020, with retrospective effect. The petitioner sought parity under this Notification, arguing that it was issued during the pendency of the writ petition, and neither party could act without the Court's leave. The Revenue Authority agreed to assess the impact of the Notification on the petitioner if directed by the Court within a reasonable time.

The Court found it appropriate to reproduce the Notification dated 13th December, 2019, which allowed payment of tax and surcharge with interest by 31st January, 2020, for those who had declared income but not paid by the due date. The Court held that neither party could act during the Notification period without Court's leave, and the petitioner's request for extension deserved consideration under the Notification. Consequently, the issue was remanded to the Principal Commissioner of Income Tax for a merit-based assessment within six weeks from the date of the order's communication.

In conclusion, the writ petition and connected applications were disposed of, emphasizing the need for the Revenue Authority to review the petitioner's case in light of the Notification dated 13th December, 2019, and make a decision within the stipulated timeframe.

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