TaxTMI 
TaxTMI 
2023 (8) TMI 684
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....puted tax. As per the above Act, 2020, the declarant should submit his declaration u/s 4 of the Act, 2020 before the designated authority, and thereafter the designated authority, after receiving the declaration submitted by the declarant, will grant a certificate to the declarant containing particulars of the tax arrears and the amount payable after such determination. It is further contended by learned counsel for the petitioner that in pursuance of the scheme of the above Act 2020, for the resolution of the tax for the Assessment Year 2010-11, the petitioner submitted his declaration on 5.6.2020 as required u/s 4 of the Act, 2020. After submission of the aforesaid declaration certificate of designated authority in Form-III as per Section 5 of the Act, 2020 was also uploaded on the portal on 9.11.2020, which was also downloaded by the petitioner on the same day. As per this certificate, the petitioner was required to pay Rs. 18,67,137/- on or before 31.12.2020. Before the expiry of the last date, the Ministry of Finance issued a notification dated 27.10.2020, by which the last date of submission of the balance amount was extended up to 31.3.2021. Subsequently, the aforesaid notif....
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....sel for the petitioner heavily relied upon the judgement of Delhi High Court passed in Writ Petition (C) No. 3560 of 2022 (I.A. Housing Solution Pvt. Ltd. vs. Principal Commissioner of Income Tax-4) decided on 2.11.2022 in which the present scheme issued under the Act, 2020 was under consideration regarding extension of date. While allowing this petition, the Delhi High Court condoned the delay in depositing the balance amount of tax and directed the Income Tax Department to accept the balance amount as stipulated in Form-III on the ground that unforeseen and extraneous circumstances which were beyond the control of the petitioner and resulted in delayed depositing the balance tax can be condoned considering the lockdown period on account of COVID-19 from 25.3.2020. 6. Learned counsel for the petitioner further relied upon the judgement of Apex Court in the case of Shekhar Resorts Ltd. vs. Union of India and others, reported in (2023) 3 SCC 220. In the above judgement, Hon'ble Apex Court, after condoning the delay, permitted the petitioner to deposit the balance outstanding on the ground that the petitioner had already submitted his declaration but he could not make the payment du....
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....clarant for resolution, for resolution of disputed tax, files a declaration to designated authority in accordance with the provision of Section 4 in respect of tax arrears as mentioned in the chart before the last date, then the designated authority within 15 days from the date of receipt of declaration will determine the amount payable by the declarant and grant certificate to the declarant containing particulars of tax arrears and the amount payable after such declaration as per Form-III then the declarant shall pay the amount determined within 15 days from the date of receipt of certificate. Paragraph Nos. 3 and 5 of the Act 2020 are quoted as below:- "3. Subject to the provisions of this Act, where a declarant files under the provisions of this Act on or before such date as may be notified, a declaration to the designated authority in accordance with the provisions of section 4 in respect of tax arrear, then, notwithstanding anything contained in the Income-tax Act or any other law for the time being in force, the amount payable by the declarant under this Act shall be as under, namely:- Sl. No. Nature of tax arrear. Amount payable under this Act on or before the 31st day ....
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.... on any issue on which he has already got a decision in his favour from the Income-tax Appellate Tribunal (where the decision on such issue is not reversed by the High Court or the Supreme Court) or the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner as may be prescribed: Provided also that in a case where an appeal is filed by the appellant on any issue before the Income-tax Appellate Tribunal on which he has already got a decision in his favour from the High Court (where the decision on such issue is not reversed by the Supreme Court), the amount payable shall be one-half of the amount in the Table above calculated on such issue, in such manner as may be prescribed. 5. (1) The designated authority shall, within a period of fifteen days from 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 ....
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....red because on 1.11.2021, the petitioner met with an accident and suffered a knee injury, and, therefore, he could not approach the bank to clear the cheque or credit the amount on 1.11.2021. For this delay of three days, the Income Tax Department did not accept the amount deposited by the petitioner under the "Vivad is Vishwas" Scheme. Thereafter, the petitioner's application for condonation of delay of three days was also rejected by the Chairman of the Central Board of Direct Tax by order dated 25.8.2022. The fact of dropping of cheque in the drop box as well as the accident of the petitioner was not disputed by the respondent in the counter affidavit. Now the fact remained is whether the delay of three days in depositing the arrears of tax can be condoned, considering the fact of unforeseen circumstances which were beyond the control of the petitioner. 11. In the judgement of the Delhi High Court passed in Writ Petition (C) No. 3560 of 2022, a similar issue was under consideration. Delhi High Court, after considering the aforesaid issue, decided the same by judgement dated 2.11.2022 and observed that the delay in payment of arrears of tax is attributable to unforeseen and ....
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....ng the moratorium. Even if the appellant wanted to deposit settlement amount within the stipulated period, it could not do so in view of the bar under the IBC as, during the moratorium, no payment could have been made. In that view of the matter, the appellant cannot be rendered remediless and should not be made to suffer due to a legal impediment which was the reason for it and/or not doing the act within the prescribed time. 24. Now so far as the observations made by the High Court to the effect that the High Court cannot, in exercise of powers under Article 226 of the Constitution of India extend the period under the scheme, 2019, to some extent the High Court is right. The High Court while exercising the powers under Article 226 of the Constitution of India cannot extend the scheme. However, in the present case it is not a case of extension of the scheme by the High Court; It is a case of taking remedial measures. It is not a case where the appellant did not make any application within the stipulated time under the scheme. This is not a case where the Form No.3 determining the settlement amount was not issued during the validity of the scheme. It is not a case where the appel....