TaxTMI 
TaxTMI 
2017 (2) TMI 158
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.... him; with a further prayer to permit him to have his Advocate present at visible but not audible distance during his interrogation and recording of the statement in connection with the said seizure of amount in the instant case or any proceedings consequential thereto, much less seeking refrain of any coercive action against him alleging to the aforesaid dispute; with a liberty to avail the remedy under the "Pradhan Mantri Garib Kalyan Yojana, 2016" (hereinafter referred to "PMGKY Deposit Scheme") by depositing the aforesaid amount, tax, surcharge and penalty. Mr. Gurmohan Singh Bedi,learned counsel appearing on behalf of the petitioner submits that while travelling in a cab from Delhi he was stopped by the police officials in the juris....
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..... A copy of the same is annexed as Annexure P-5. On 27.12.2016, the Central Board of Director Taxes, TPL Division, vide circular no.43 of 2016 issued explanatory notes regarding the said Scheme. Paragraphs 4, 5 and 8 of the same have been referred to which are reproduced herein below:- "4. The person making a declaration under the Scheme would be liable to pay tax at the rate of thirty per cent of the undisclosed income as increased by surcharge to be called the Pradhan Mantri Garib Kalyan Cess calculated at the rate of thirty-three per cent of such tax. In addition, penalty at the rate of ten per cent of the undisclosed income shall be payable. The declarant shall also be required to deposit an amount not less than twenty-five per....
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....tions in Securities) Act, 1992; (d) in relation to any undisclosed foreign income and asset which is chargeable to tax under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015." He also submits that by virtue of the aforementioned explanatory notes, only persons who are being prosecuted for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention), Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of Money Laundering Act, 2002 are not entitled to avail the benefit of this Scheme. The aforementioned explan....
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....ng of the Income Tax Officer, the police officials handed over the aforementioned amount. Hence, the police officials rightly conducted further enquiry and as well as handed over detained amount to tax officials. No doubt, possession of the un-disclosed income in cash is not as per any of the offences under Indian Penal Code, therefore, the seizure of same cannot be said to be by the police officials. Not disclosing the correct income is undisputed and the offence, if any, is under Income Tax Act. The Income Tax Authorities are within their domain but the police officials cannot exercise the power under the Income Tax Act. Once the petitioner has candidly admitted the factum of having not been tried in any of the provisions of law, i.e.,....
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....dy of declaration. Last date for submitting the Form 1 as prescribed in the Rules may be made at anytime on or before 31.03.2017. The explanation is in tune of Section 199 (o) of the Finance Act as the petitioner has made a categoric statement that he is not involved in any of the offences as referred above. I am of the view that the use of the words "in relation of prosecution of any offence" instead of "in relation to investigating for any of the offence" clearly shows legislative intent of provisions would apply only if the charge sheet or complaint is filed for prosecuting any person under any of the aforementioned provisions of Act and not merely when investigations are going on. In the instant case, as per the petitioner's c....
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....n oblivious of the fact that economic offences are very serious and have a wider ramification. The statutory investing scheme appears to be positive process for not only enhancing the revenue collection but at the same time, it is an opportunity for reforming those who had earlier failed to make true and correct disclosure of income in normal course by taking into consideration the provisions of the aforementioned Scheme. The prayer of the petitioner of taking any coercive steps appears to be genuine. I am of the view that writ petition can be disposed of with a direction to respondents not to take any coercive action against the petitioner and he may be granted a permission to take the assistance of a lawyer to be present at visible but....