TaxTMI 
TaxTMI 
2017 (7) TMI 732
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....itioners are assessees under the Income tax Act, engaged in the production and distribution of cinematographic films and other allied activities. The grievance of the petitioners in these writ petitions is against the refusal by the 2nd respondent - Principal Commissioner of Income Tax to process an application that was preferred by them for obtaining the benefit of the Direct Tax Dispute Resolution Scheme, 2016 (hereinafter referred to as 'the Amnesty Scheme') in respect of penalties that were imposed on the petitioner under Sections 271D, 271E and 272A (2) (C) of the Income Tax Act. The facts in these writ petitions would indicate that, for the assessment years 2007-2008, the petitioners had declared a Net Loss and the assessments....
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....tal income finally determined. The phrase 'tax arrear' is defined in the Amnesty Scheme as meaning the amount of tax, interest or penalty determined under the Income Tax Act or the Wealth-tax Act, in respect of which an appeal is pending before the Commissioner of Income Tax (Appeals) or the Commissioner of Wealth-tax (Appeals) as on the 29th day of February, 2016. For ease of reference the relevant provisions are extracted hereunder: "201. (1) In this Scheme, unless the context otherwise requires,- (a) xxx (b) xxx (c) xxx (d) xxx (e) xxx (f) xxx (g) xxx (h) "tax arrear" means, the amount of tax, interest or penalty determined under the Income-tax Act o....
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....ned." 3. A perusal of the Scheme also indicates that a declaration under Section 202 of the Finance Act, 2016, governing the Amnesty Scheme is to be made, by the applicant seeking the benefit of the Scheme, before the designated authority in the prescribed form and in the prescribed manner and, on the application of the declarant being considered in terms of the Scheme, the pending appeals with regard to the tax dispute would stand automatically withdrawn. Section 208 of the Finance Act, 2016, which provides for exclusions from the operation of the Scheme reads as follows: "208. The provisions of this Scheme shall not apply- (a) in respect of tax arrear or specified tax,- (i) relating to an assessment year in r....
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....med that the declarations submitted by them could not be processed since, as per the Amnesty Scheme, the tax arrears in the case of penalty necessarily referred only to such penalty as was linked to the total income finally determined. It was pointed out that, inasmuch as the penalties that were imposed of the petitioners, were not linked to any assessment proceedings, the petitioners could not have preferred a declaration under the Amnesty Scheme referred above. In the writ petitions, the petitioners impugn the said intimations served on them, and seek a direction to the 2nd respondent designated authority to process the declarations filed by them in accordance with Ext.P4 Amnesty Scheme. 5. A statement has been filed on behalf of the r....
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....in respect of penalties that were imposed on them by the authorities concerned. It is also not in dispute that in the declaration, the petitioners had offered to pay 25% of the mandatory penalties that were imposed on them. The contention of the Department is essentially that, inasmuch as there is a reference to a payment of tax and interest payable on the total income finally determined, along with 25% of the minimum penalty leviable, the Scheme must be intended to cover only such penalties as have been imposed on an assessee along with the assessment order. The clarification of the CBDT in the context of a penalty order under Section 271(C) or 271 (C) (A) of the Income Tax Act also suggests that, such penalties, as are not linked to asses....