2022 (2) TMI 932 - SCH - Income Tax

Supreme Court grants adjustment of tax deposits, directs benefit to appellant, appeal disposed without costs

Yogesh Roshanlal Gupta Versus Central Board Of Direct Taxes

The Supreme Court allowed the appellant's request for adjustment of amounts deposited towards the first two tax instalments under the Income Declaration ... Rejection of extension of time for payment of the last installment of Tax under Income Disclosure Scheme, 2016 (IDS) - Seeking to allow extension of time, for payment of the last installment of Tax under Income Disclosure Scheme, 2016 - seeking to direct to refund the tax amount paid in the first and second installment of IDS, 2016 - HELD THAT :- In the peculiar facts and circumstances of the instant case, we direct that the appellant be given benefit of the amounts deposited towards first two installments while reckoning the tax liability of the appellant after revised assessment. With these observations, the appeal stands disposed of without any order as to costs. Issues:Challenge to High Court judgment on Income Declaration Scheme, 2016 regarding payment of tax instalments and seeking adjustment of amounts deposited.Analysis:The Supreme Court addressed the challenge to the High Court judgment concerning the Income Declaration Scheme, 2016. The petitioner had declared undisclosed income under the scheme and had paid two out of three tax instalments as required. However, there was a default in paying the third instalment. The petitioner sought an extension of time to pay the third instalment and requested an adjustment of the amounts deposited towards the first two instalments to receive appropriate relief in the tax liability computed after revised assessment.The Court considered the submissions made by both parties. The appellant's counsel argued for the adjustment of amounts deposited towards the first two instalments to be considered while calculating the tax liability after revised assessment. The Additional Solicitor General represented the Revenue in this matter.In a specific decision based on the unique circumstances of the case, the Supreme Court directed that the appellant should benefit from the amounts deposited towards the first two instalments when determining the tax liability after the revised assessment. Consequently, the appeal was disposed of without any costs being imposed on either party.