TaxTMI 
TaxTMI 
2022 (11) TMI 1308
X X X X Extracts X X X X
X X X X Extracts X X X X
....Vivad Se Vishwas Act, 2020 ('VSV Act'). ARGUMENTS ON BEHALF OF THE PETITIONER 2. Learned Counsel for the Petitioners stated that Petitioners had filed Form 1 as well as Form 2 within the time stipulated as per the provisions of VSV Act on 04th March, 2021 and Form No. 3 was issued to Petitioners on 07th May, 2021 and 22nd June, 2021. He stated that the Petitioner Companies were unable to pay the disputed amount as determined by Respondents in Form 3 prior to the last date, namely, 31st October, 2021 due to death of a Director of the companies, who was looking after the taxation and other affairs on 20th July, 2021. 3. Learned Counsel for the Petitioners stated that the delay in payment was not intentional and the Petitioners always intended to settle the dispute with the Income tax department and avail the benefit of VSV Act. He contended that not condoning the delay in payment would be against the very object and purpose of the Scheme as the object of the scheme is to reduce litigation and collect revenue. 4. Learned Counsel for Petitioners submitted that the Rajasthan High Court in similar facts in Agroha Electronics Through its Proprietor Vs. Union of India Through S....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the date of receipt of the declaration, by order, determine the amount payable by the declarant in accordance with the provisions of this Act and grant a certificate to the declarant containing particulars of the tax arrear and the amount payable after such determination, in such form as may be prescribed. (2) The declarant shall pay the amount determined under sub-section (1) within fifteen days of the date of receipt of the certificate and intimate the details of such payment to the designated authority in the prescribed form and thereupon the designated authority shall pass an order stating that the declarant has paid the amount." 6. He submitted that the Supreme Court in Hemalatha Gargya Vs. Commissioner of Income Tax, A.P. and Anr., (2003) 9 SCC 510 while dealing with a pari materia provision, namely, Section 67(2) of Voluntary Disclosure of Income Scheme, 1997 ('VDI Scheme'), has held as under:- "9. The use of the word "shall" in a statute, ordinarily speaking, means that the statutory provision is mandatory. It is construed as such unless there is something in the context in which the word is used which would justify a departure from this meaning. There....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e Scheme and the fact that the Scheme does not form part of the Income Tax Act, 1961 at all". 10. He lastly submitted that in an ordinary situation, the provisions of law are to be mandatorily applied and relief on equitable consideration cannot be granted. However, in extraordinary and exceptional situation like death and Covid, the non-grant of relief on equitable consideration would be irrational. COURT'S REASONING IN RECOGNITION OF INTERMITTENT LOCKDOWN ON ACCOUNT OF THE COVID-19 PANDEMIC THE SCHEME WAS AMENDED SEVERAL TIMES TO EXTEND THE DEADLINE FOR PAYMENT. MOREOVER, DEATH OF THE MANAGING DIRECTOR OF THE COMPANIES WAS AN EXTRAORDINARY AND EXCEPTIONAL EVENT. 11. Having heard learned counsel for the parties, this Court is of the view that the timeline to pay under the VSV was not mandatory as the last date stipulated under the VSV Act (3 of 2020) was extended by virtue of Taxation and Other Laws (Relaxation of Certain Provisions) Act, 2020. A tabular chart showing the extension of the deadlines to pay under the VSV Scheme is reproduced hereinbelow:- "CHART FOR VIVAD SE VISHWAS SCHEME EXTENSIONS S.No. Notification No. Due date on or before which declarat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o tax where the return of income had been filed without disclosing the full and true material facts necessary for the assessment of that income. 14. Consequently, the VDI Scheme provided a one-time opportunity to the assessees to declare the undisclosed income which was concealed by the assessees and at the same time, provided them with immunity from penalty and prosecution under the provisions of the Act for not voluntarily disclosing the income chargeable to tax. Hence, the VDI Scheme was in the nature of an amnesty scheme which provided a window to the assessees to come clean without any adverse consequences under the provisions of the Act. It was in this context that the Apex Court observed that "....Where the assessees seek to claim the benefit under the statutory scheme they are bound to comply with the conditions under which the benefit is granted there is no application of any equitable consideration when the provisions of scheme are stated in such plain language". 15. In fact, while interpreting a similar scheme "Kar Vivad Samadhan Scheme", the Supreme Court in Commissioner of Income Tax, Rajkot Versus Shatrusailya Digvijaysingh Jadeja, 2005 (9) TMI 362 SC held that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... remedy the injustice. The Supreme Court in B.C.Chaturvedi v. Union of India, (1995) 6 SCC 749 has held "It deserves to be pointed out that the mere fact that there is no provision parallel to Article 142 relating to the High Courts, can be no ground to think that they have not to do complete justice". 19. One of us (Manmohan, J) in Siddharth International Public School v. Motor Accident Claim Tribunal, (2016) SCC OnLine Del 4797, para 41 has held, "it is settled law that this Court has extremely broad jurisdiction under Article 226 of the Constitution and under the said Article it can pass whatever orders are necessary for doing equity and justice. The Supreme Court in N.S. Mirajkar v. State of Maharashtra, 1966 3 SCR 744 has held that "unlike a inferior court, in respect of a High Court, which is also a Court of Record, it is assumed that every action is within its jurisdiction, unless expressly shown otherwise". 20. Consequently, the power of the High Court under Article 226 of the Constitution of India to grant relief in extraordinary and exceptional circumstances cannot be taken away or curtailed by any legislation. 21. In fact, the Supreme Court in Dal Chandra Rastog....