TaxTMI 
TaxTMI 
2025 (5) TMI 2251
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....187(1) of the Finance Act, 2016 and therefore, the declaration filed was not a valid declaration. Accordingly, the PCIT, Thane cancelled Form No.2 being acknowledgement of declaration u/s 183 of the Finance Act, 2016 in respect of Income Declaration Scheme, 2016 and passed order u/s 187(3) of the Finance Act, 2016 in respect of IDS, 2016. 3. The case of the assessee was reopened u/s 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for scrutiny by recording the following reasons: "In this case, the assessee had filed Form 1, being form of declaration under section 183 of the Finance Act 2016 in respect of Income Declaration Scheme, 2016. Accordingly, the assessee was required to pay tax, surcharge & penalty on or before the specified date mentioned in section 187(1) of the Finance Act 2016 on the additional income offered under IDS, 2016. However, the assessee had failed to pay the tax, surcharge & penalty on or before the specified date mentioned in section 187(1) of the Finance Act 2016 and therefore, the declaration filed was not a valid declaration. Accordingly, the Principal Commissioner of Income Tax-2, Thane cancelled Form no.-2, being acknow....
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....e that income of the assessee for AY2017-18 has escaped assessment within the meaning of provisions of Section 147 of the Income-tax Act, 1901. The amount of income remained to be brought to taxis Rs. 11.59.01.141/- Le above Rs.1 Lakh for AY 2017-18", 4. Accordingly, notice u/s 148 of the Act was issued on 31.03.2021. However, the assessee did not file any valid return of income in response to the same. Subsequently, the Assessing Officer issued notice u/s 142(1) of the Act. However, despite sufficient opportunities granted by the Assessing Officer, there was no compliance from the side of the assessee for which the Assessing Officer proceeded to complete the assessment u/s 144 of the Act. 5. The Assessing Officer observed that the assessee had voluntarily offered undisclosed income under the Income Declaration Scheme, 2016 of Rs. 11,59,01,141/- for various assessment years but failed to honour his commitment by paying statutory taxes as per the provisions of IDS, 2016. He therefore, made addition of Rs. 11,59,01,141/- u/s 69A r.w.s. 115BBE of the Act by recording as under: "Further it is seen that the assessee have failed to honour his commitment by paying statutory....
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.....2024, the appellant has stated the following: "Except information based in Form-1 of Income Declaration Scheme the Assessing Officer was not having any adverse material or information on his record. A) The Assessing Officer made addition on the basis of IDS 2016 as the Assessee could not pay the requisite installments of tax to be paid under IDS 2016. B) Being a layman Assessee could not assess the gravity of all this matter and also declaration under IDS2016 was also made under a wrong belief that the booking advances were Income and had remained to be offered for taxation. C) The income earned by completing the project known as KUMAR SIDDHACHAL should have been offered for taxation under regular income tax return filing process as the certificate of completion of the project is obtained on 16.09.2016 and 10.08.2017, then why an option of IDS 2016 was suggested is also not known to the Assessee. D) The Assessing Officer basically applied section 69A of the Income Tax Act when the same is not applicable. Nothing is unexplained. There is nothing available on record except Form-1 of IDS 2016 which suggests that there are unrecorded assets....
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.... void the Normal Provisions of Taxation of Income Tax Act 1961 would apply." 7. However, the Ld. CIT(A) / NFAC was not satisfied with the submissions made by the assessee and upheld the action of the Assessing Officer by observing as under: "6.4.1 In this context, it is important to go through the provisions of section 197 of The Income Declaration Scheme, 2016 are reproduced below: Removal of doubts. 197. For the removal of doubts, it is hereby declared that- (a) ... (b) where any declaration has been made under section 183 but no tax, surcharge and penalty referred to in section 184 and section 185 has been paid within the time specified under section 187, the undisclosed income shall be chargeable to tax under the Income-tax Act in the previous year in which such declaration is made; (c) ..." [Emphasis supplied) 6.4.2 A plain reading of clause (b) of section 197 of The Income Declaration Scheme, 2016 would make it clear and unambiguous that where any declaration has been made under section 183 but no tax, surcharge and penalty referred to in section 184 and section 185 has been paid within the time specified un....
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....der IDS 2016 is unexplained money under section 69A of the Income Tax Act. Just and proper relief be granted to the assessee in this respect. 2) The learned commissioner of Income Tax Appeals erred on facts and circumstances of the case and as per law in not appreciating the fact that declared income under IDS 2016 is nothing but business income of the assessee by ignoring the submission made before his good office. Just and proper relief be granted to the assessee in this respect. 3) The authorities below erred in facts and circumstances of the case and as per law in changing the character of income as declared in IDS 2016 and treating the same as unexplained money. Just and proper relief be granted to the assessee in this respect. 4) The authorities below erred in facts and circumstances of the case and as per law in making and confirming the addition under section 69A of the Income Tax Act and thereby computing the tax payable as provided under section 115BBE of the Income Tax Act. Just and proper relief be granted to the assessee in this respect. 5) The authorities below erred in the facts and circumstances of the case and as per law in charg....
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.... 115BBE of the Act. 12. The Ld. DR on the other hand heavily relied on the orders of the Assessing Officer and the Ld. CIT(A) / NFAC. 13. We have heard the rival arguments made by both the sides, perused the orders of the Assessing Officer and Ld. CIT(A) / NFAC and the paper book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the assessee in the instant case has filed Form No.1 under the IDS, 2016 declaring the undisclosed income of Rs. 11,59,01,141/- for two assessment years i.e. assessment years 2014-15 and 2015-16, the details of which have already been reproduced in the preceding paragraphs. We find due to nonpayment of tax as per the provisions of the said scheme, the PCIT rejected the application made under the IDS, 2016. Since the amount declared by the assessee as per the income declaration scheme, 2016 remained to be brought to tax, the Assessing Officer, after recording reasons, reopened the assessment and issued notice u/s 148 of the Act. Since there was no valid return filed by the assessee and the various statutory notices remained un-complied with, the Assessing Officer proceeded to complete the assessment....