Income Declaration Scheme 2016 – Determination of sum payable and payment of first instalment by assessee – Rejection of application pursuant to issue of notice for assessment – Tax already deposited under scheme to be adjusted by Department

45.  Sangeeta
Agrawal vs. Principal CIT; 409 ITR 254 (MP) Date of order: 3^rd August, 2018 A. Y. 2014-15 Section 191 of F. A. 2016 (Income Declaration Scheme,
2016); Article 226 of Constitution of India and section 143(2) of ITA 1961

Income Declaration Scheme 2016 – Determination of sum
payable and payment of first instalment by assessee – Rejection of application
pursuant to issue of notice for assessment – Tax already deposited under scheme
to be adjusted by Department

The assessee made an application under the Income Declaration Scheme,
2016, and offered an amount as undisclosed income for the A. Y. 2014-15. The
total tax payable thereon was determined and she paid the first instalment of
tax. Thereafter, a notice u/s. 143(2) of the Act, was issued and the
application under the Scheme was rejected. Since according to section 191 of
the Finance Act, 2016, any amount paid under the Scheme was not refundable, the
assesse prayed for adjustment of the amount already paid. The Department
rejected the application for adjustment or refund of the amount paid under the
Scheme.

The assesee filed a writ petition and challenged the order of rejection.
The Madhya Pradesh High Court allowed the writ petition and held as under:

“Considering the law laid down by the Supreme Court in the case of
Hemalatha Gargya Vs. CIT; (2003) 259 ITR 1 (SC) as well as the Bombay High
Court in Sajan Enterprises Vs. CIT; (2006) 282 ITR636 (Bom), we quash the
impugned order and direct the respondent-Revenue to adjust the amount of Rs.
3,28,068 which has been deposited by the petitioner in the relevant A. Y.
2014-15.”