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2024 Supreme(Online)(MAD) 6292
IN THE HIGH COURT OF JUDICATURE AT MADRAS RESERVED ON : 22.08.2023 PRONOUNCED ON : .01.2024 CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.Nos.10735 & 10741 of 2022 and WMP.Nos.10383, 10384 & 10388 of 2022 RJPN Developers, Rep.by its partner/Authorised Signatory R.Yuvarajann ... Petitioner in both W.Ps.
vs.
The Principal Commissioner of Income Tax -1, 121, Uttamar Gandhi Road, Nungambakkam, Chennai 600 034. ... Respondent in both W.Ps.
Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, calling for the records pertaining to C.No.IDS/AALFR1836J/2019-20 dated 25.04.2019 and quash the order passed under Section 183 of the Finance Act, 2016 relating to Assessment Year 2017-18 and consequently direct the respondent to give credit to the prepaid taxes remitted by the petitioner.
In both W.Ps.
For Petitioner : Mr.V.S.Jayakumar Senior Counsel for M/s.G.Vardini karthik For Respondent : Mr.B.Ramaswamy Senior Standing Counsel
C O M M O N O R D E R
1. By this common order both these writ petitions are being disposed.
2. Both these Writ Petitions have been filed by the same person. Relief sought for in these writ petitions, read as under:-
| W.P.No.10735 of 2022 | W.P.No.10741 of 2022 |
| For the issuance of a Writ of Certiorarified Mandamus calling for the records relating to the order of respondent in C.No.IDS/ AALFR1836J/ 2019-20/ Dated : 25.04.2019 and quash the order passed under Section 183 of the Finance Act, 2016 relating to Assessment Year 2017-18 and consequently direct the respondent to give credit to the prepaid taxes remitted by the petitioner by issuing Form-4 under the IDS Scheme 2016, and pass appropriate orders in accordance with law. | For the issuance of a writ of Mandamus directing the respondent to consider the rectification petition dated 09.03.2022 filed by the petitioner under Section 154 of the Income Tax Act, 1961 in its proper perspective and pass appropriate order in accordance with law. |
3. By the impugned order, dated 25.04.2019 bearing Reference C.No.IDS/AALFR1836J/2019-20 the impugned in W.P.No.10735 of 2022, the declaration filed by the petitioner under the provisions of Income Declaration Scheme, 2016 under Finance Act, 2016 has been rejected. Relevant portion of the impugned order reads as under:-
3. The request of the assessee for adjustment of the tax of 1.25 crores towards IDS 2016 was forwarded to the Additional Director General ( Systems-2), New Delhi, as the correction of challans has to be done by them. In this regard, a communication has been received from them stating that ‘ as per the IDS Scheme tax paid in the form of Advance tax, Self st Assessment tax prior to IDS Scheme (i.e. 1 June 2016) are not allowed to claim under IDS except the TDS payments. In view of the above, the tax payment of 1.25 crores made by the assessee prior st to the IDS scheme (i.e. 1 June 2016) cannot be allowed to claim under the IDS Scheme.
4. Attention is drawn to the provision of IDS 2016 which states that “ Declaration shall be void and shall be deemed never to have been made if the declarant falls to pay the entire amount of tax, surcharge and penalty within the specified dates. “where the declaration is to be held void for the above reason, it shall be deemed never to have been made and all the provisions of the Income Tax Act, 1961 including penalties and Prosecution, shall apply accordingly”.
5. As the assessee had failed to pay the amount of Rs.1,24,78,951/- ( 2,51,40,871 – 90,61,920/-) before the stipulated date indicated in the table supra, the declaration of the assessee is deemed never to have been made and accordingly, all the provisions of the Income Tax Act, including penalties and prosecution, shall apply.
6. As per 197(b) of Finance Act, 2016, where any declaration has been made under Section 183 but no tax, surcharge and penalty referred to in Section 184 and 186 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 i.e. the undisclosed income has to be chargeable to tax in the previous year relevant to the Assessment Year 2017-18. Hence, the AO is directed to take appropriate action as per the extent provisions of the Income Tax Act, which shall apply in the case of the above mentioned assessee.
4. In W.P.No.10741 of 2022, the petitioner seeks for a Mandamus directing the respondent to consider the rectification petition dated 09.03.2022 filed by the petitioner under Section 154 of the Income Tax Act, 1961 in its proper perspective and pass appropriate order in accordance with law.
5. The petitioner had opted to settle the dispute under the Income Declaration Scheme, 2016 by filing Form Nos.1, 2 & 3 declaring the total taxable income not disclosed for the Assessment Y
