Substantial compliance under the deposit scheme protected an assessee who made bona fide efforts despite bank-related obstacles.

Substantial compliance under the Pradhan Mantri Garib Kalyan Deposit Scheme was accepted where the assessee had paid the tax, surcharge and penalty components and made bona fide efforts to deposit the balance within time. The failure to complete the remaining deposit was caused by the first bank being unauthorised to receive it and the second bank being closed, showing attempted compliance rather than wilful default. In these peculiar facts, the Court held that the scheme could not be applied in an unduly burdensome manner and the assessee remained entitled to its benefit.

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Issues: Whether the assessee could be denied the benefit of the Pradhan Mantri Garib Kalyan Deposit Scheme for failure to deposit the balance amount within the prescribed time, despite having complied with the tax, surcharge and penalty components and having made bona fide efforts to deposit the remaining amount.

Analysis: The assessee had already complied with the requirements corresponding to tax, surcharge and penalty, while the remaining deposit under the scheme could not be completed because the first bank approached was not authorised to accept the deposit and the second bank was closed for the day. The amount remained in the possession of the Department, and the facts showed attempted compliance rather than wilful default. The Court treated the scheme as one that should not be applied in an unduly burdensome manner where the assessee had substantially complied and the failure was occasioned by circumstances beyond control.

Conclusion: The assessee was held entitled to the benefit of the scheme and could not be denied relief on the ground of non-deposit in the peculiar facts of the case.

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