Income Declaration Scheme relief requires credit for prior payments and issuance of Form 4, with consequential demand and penalty orders quashed.

The Bombay HC noted that declarations under the Income Declaration Scheme, 2016 had to be acted upon in accordance with the IDS Rules by giving credit for amounts already paid, including advance tax and self-assessment tax, and issuing Form 4 within four weeks. On that basis, the consequential assessment orders, demand notice, and penalty notice could not survive and were quashed. The petitions were accordingly disposed of by granting the substantive relief sought under the Scheme and setting aside the adverse orders.

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Issues: Whether the petitioners were entitled to issuance of Form 4 under the Income Declaration Scheme, 2016 after crediting amounts paid, and whether the assessment orders, demand notice, and penalty notice were liable to be quashed.

Analysis: The petitions were disposed of in terms of earlier reasoned orders covering the same issue. The respondents were directed to act on the declarations made under the Income Declaration Scheme, 2016 read with the IDS Rules and to issue Form 4 within four weeks after giving credit for all amounts paid, including advance tax and self-assessment tax, as applicable. As a consequence of that direction, the assessment orders, demand notice, and penalty notice could not stand.

Conclusion: The petitioners succeeded. Relief was granted for issuance of Form 4 after due credit of payments, and the impugned assessment, demand, and penalty orders were quashed and set aside.

Final Conclusion: The petitions were finally disposed of by granting the substantive reliefs sought under the Income Declaration Scheme and by nullifying the consequential adverse orders.

Ratio Decidendi: Where the declaration under the Income Declaration Scheme is required to be acted upon after crediting all payments made, consequential assessment, demand, and penalty orders cannot survive.

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