2024 (3) TMI 1489 - HC - Income Tax

Credit due for taxes paid under Income Declaration Scheme 2016 and self-assessment tax; assessment order quashed

Rajendra Lilachand Sanghavi Versus The Principal Commissioner of Income Tax-2, Pune & Ors.

The HC directed that credit must be given for taxes already paid under the Income Declaration Scheme, 2016: the revenue agreed to credit advance tax of ... Credit for the self assessment tax paid under IDS - assessee declared income under the Income Declaration Scheme, 2016 (IDS) - Petitioner was informed that advance tax and self assessment tax paid by Petitioner could not be adjusted against the liability under the IDS HELD THAT:- An affidavit in reply of one Aparna M Aggarwal, Principal Commissioner of Income Tax-2, Pune, affirmed on 5th May 2022 is filed. In the said affidavit, Respondents have agreed to give credit to a sum of Rs. 4,50,000/- that Petitioner had paid as advance tax. With regard to self assessment tax paid for AY 2013-14, it is stated that the legal opinion of the standing counsel has been sought in view of the decision of Kumudam Publications (P) Ltd. v. Central Board of Direct Taxation [2017 (4) TMI 359 - DELHI HIGH COURT] and since it was a policy matter and opinion is yet to be received, input from the CBDT is also being sought. One thing is clear that Respondents are not averse to giving credit for the self assessment tax, but they wanted somebody to tell them to go ahead and give credit. In our view, credit for the self assessment tax paid for AY 2013-14 has to be given. Mr. Suresh Kumar states, his information is that the Board has expressed an opinion that credit for self assessment tax paid cannot be given. In our view, any amount paid by Petitioner for those relevant Assessment Years, credit has to be given and we find support for this view in judgments of this Court in Kamla Chandra Singh Kabali [2022 (2) TMI 344 - BOMBAY HIGH COURT] and CEAT Limited [2024 (2) TMI 930 - BOMBAY HIGH COURT] Therefore, the assessment order has to be quashed and set aside. Petitioner filed ROI for AY 2017-18 declaring Rs. 8,36,800. Respondent issued notice under Section 148, alleging liability of Rs. 26,05,390 on declared income under the Income Declaration Scheme, 2016 (IDS); Petitioner had paid only part and was called to pay balance. Petitioner contended advance tax and self-assessment tax paid for prior years and payments under IDS amounted to Rs. 26,74,784, exceeding the IDS liability; Respondent initially refused to adjust those amounts. Respondent agreed to credit Rs. 4,50,000 (advance tax) but sought legal/CBDT opinion on crediting self-assessment tax of Rs. 15,78,210. Court held that 'any amount paid by Petitioner for those relevant Assessment Years, credit has to be given' and found support in precedent. Assessment order, demand notice and penalty dated 31-03-2022 were quashed and set aside. Respondent directed to issue Form 4 under the IDS within four weeks after giving credit to all amounts paid, including advance and self-assessment tax.