June 2022
Income Declaration Scheme, 2016 — Adjustment of advance tax towards tax, surcharge and penalty on income declared — No reason to distinguish between tax deducted at source and advance tax for purpose of credit — Assessee entitled to credit of advance tax paid pertaining to assessment years for which declaration filed — Principal Commissioner to issue certificate as required by rule 4(5) of Income Declaration Scheme Rules, 2016
By K. B. Bhujle
Advocate
16 Tata Capital Financial Services Ltd vs. ACIT [2022] 443 ITR 148 (Bom.) A.Ys.: 2011-12 to 2014-15 Date of order: 2nd February, 2022 Ss. 139, 199, 210 and 219 of ITA, 1961
Income Declaration Scheme, 2016 — Adjustment of advance tax towards tax, surcharge and penalty on income declared — No reason to distinguish between tax deducted at source and advance tax for purpose of credit — Assessee entitled to credit of advance tax paid pertaining to assessment years for which declaration filed — Principal Commissioner to issue certificate as required by rule 4(5) of Income Declaration Scheme Rules, 2016
The assessee did not file returns of income for the A.Ys. 2011-12 to 2014-15. The assessee filed a declaration under the Income Declaration Scheme, 2016 u/s 183 of the Finance Act, 2016 and declared undisclosed income for those four assessment years. There were certain mistakes in such forms. On receipt of a notice u/s 148 of the Income-tax Act, 1961, the assessee filed a revised declaration. The Principal Commissioner did not issue the certificate as required by rule 4(5) of the Income Declaration Scheme Rules, 2016 in respect of the income declared by the assessee under the scheme after accepting the declaration. The Principal Commissioner held that the assessee was not entitled to an adjustment of the advance tax towards tax, surcharge and penalty payable in respect of the undisclosed income declared on the grounds that only
