Assessee filed declaration of undisclosed income under Income Declaration Scheme, 2016. Subsequently, assessee paid 50 per cent of total tax, surcharge and penalty in two instalments, however, did not pay third instalment of remaining 50 per cent of tax, surcharge and penalty. Application to CBDT seeking extension of time for making payment of third instalment was rejected. High Court also dismissed writ petition. On appeal the Supreme Court held that the assessee was to be permitted to deposit third instalment with interest at rate of 12 per cent with Income Tax Department.
Dal Chandra Rastogi v. CBDT (2019) 264 Taxman 83 (SC) Editorial: Order of High Court is reversed, Siddharth Rastogi v. CBDT (2018) 402 ITR 17/ 301 CTR 545 / 163 DTR 449 (Delhi) (HC) Dal Chandra Rastogi v. CBDT (2018) 402 ITR 17/ 301 CTR 545 / 163 DTR 449 (Delhi) (HC) Meena Rastogi v. CBDT (2018) 404 ITR 97 / 301 CTR 548 / 163 DTR 452 (Delhi) (HC)
S. 183 : Payment of tax–Failure to pay third instalment – Rejection of application was held to be not justified – Permitted assessee to deposit tax under Income Declaration Scheme belatedly subject interest @ 12%. [IDS, S. 196 IT Act, 119(2)]