Advance tax is entitled to the same dispensation as tax deducted at source (TDS) and should be credited against the liability under the Income Declaration Scheme, 2016.

JUDGMENT :

N.J. JAMADAR, J.

1. Rule. Rule made returnable forthwith and, with the consent of the learned Counsel for the parties, heard finally.

2. By this petition under Article 226 of the Constitution of India, the petitioner - an individual, seeks a direction to the Principal Commissioner of Income Tax - respondent No. 1 to issue the certificate in Form 4 as required by Rule 4(5) of the Income Declaration Scheme Rules, 2016 (“Rules 2016”) in respect of the income declared by the petitioner under the said scheme in Form 1 under Section 183 of the Finance Act, 2016 (“the Act 2016”) after accepting the declaration so made by the petitioner.

3. The petition arises in the backdrop of the following facts:

(a) The petitioner is a spinster. On account of certain unfavourable familial circumstances, the petitioner could not file returns for the assessment years 2011-12 to 2014-15.

(b) The Parliament introduced a scheme titled “Income Declaration Scheme, 2016” (“Scheme 2016”) under Section 183 of the Act, 2016, with a view to provide opportunity to the assessees to make declarations of undisclosed income.

(c) Availing the benefit of the said Scheme, 2016, the petitioner filed a declaration in the prescribed Form 1 thereunder on 30th December 2016, declaring total undisclosed income of Rs. 2,39,08,854/- which comprised undisclosed income of Rs. 52,74,620/- for the assessment year 2011-12; Rs. 69,14,678/- for the assessment year 2012-13; Rs. 62,87,925/- for the assessment year 2013-14 and Rs. 54,31,631/- for the assessment year 2014-15.

(d) In accordance with the provisions of the Act, 2016, the said undisclosed income entailed total tax, surcharge and penalty to the tune of Rs. 1,07,58,986/-.

(e) It transpired that the said Form was not acted upon by the respondent No. 1 as there were certain mistakes.

(f) After a notice under Section 147 of the Income Tax Act, 1961 (“the Act 1961”) was received, the petitioner submitted a revised Form on 18th January 2019.

(g) The respondent No. 1, despite the petitioner having complied with all the requirements to be eligible to get the benefit of the Scheme 2016, including the payment of the aforesaid amount of Rs. 1,07,58,986/- did not issue the certificate in Form 4.

(h) The petitioner claimed that she had paid advance tax and thus entitled to credit for the same against the aforesaid liability of Rs. 1,07,58,986/-.

(i) The respondent No. 1 took a stand that the petitioner was not entitled to credit of the amount, which was paid by way of advance tax.

Hence, this petition.

4. An affidavit in reply is filed by Mr. Jagdish Babu Malempati, Principal Commissioner of Income Tax. The claim of the petitioner that despite the petitioner having complied with all the requirements under the Scheme 2016, the respondent No. 1 had not issued the certificate in Form No. 4, was contested. It was contended that as against the amount of Rs. 1,07,58,986/- payable in respect of the undisclosed income under the Scheme, 2016, the petitioner had paid only a sum of Rs. 40,03,031/- towards the tax, and thus until full and final payment of tax, surcharge and penalty, as applicable under the Scheme, 2016 was made, the petitioner was not entitled for the grant of certificate in Form No. 4. Consequently, no case for grant of mandamus was made out. As regards the claim of the petitioner for adjustment of pre-deposited tax, such as advance tax and self-assessment tax, the respondent No. 1 contended that there was no provision under the Scheme, 2016 to give credit for such payment.

5. A copy of the communication dated 14th January 2020 spelling out the reasons for non-issue of Form No. 4, is annexed to the affidavit in reply.

6. Since the controversy revolves around the justifiability of the reasons ascribed by respondent No. 1 for non-issue of Form No. 4, it may be apposite to extract the relevant part of the said communication, which reads as under:

“2. On perusal of the IDS portal, it is seen that you have paid total tax of Rs. 40,03,031/- an