Question And Answer
Subject: Reassessment proceedings U/s148 on the basis of non payment towards IDS declaration
Querist: Nitin Goyal
Answered by:
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Date: January 16, 2023
Query asked by Nitin Goyal

Assessee is an individual.  assessee filed the declaration under IDS for A.Y. 2012-13 in respect of undisclosed income. In the said declaration assessee showing nature of undisclosed income as cash. Assesse not deposit the subsequent tax instalment of IDS accordingly such IDS declaration considered as invalid .

AO has issued the Notice U/s 148 on 30.03.2019 on the direction of PCIT on the ground assessee has not paid the taxes under the IDS declaration and therefore the income disclosed in the IDS for A.Y. 2012-13.

whether the action of AO for reopening the  the assessment for A.Y 2012-13 and considering the income disclosed in IDS, for which PCIT directed to take action  is justified ? Please Guide

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Yes, the action of the Assessing Officer is valid. The Hon’ble High Court of Calcutta in the case of PCIT v. Manju Osatwal (2022) 433 ITR 107 (Cal) (HC) held that once a declaration made by the assessee under Income Declaration Scheme, 2016 (IDS) has been accepted by Principal Commissioner, such authority is estopped from taking any steps which would in effect amount to reopening and/or revising decision already taken on such declaration.

Since the assessee, in this case, has not made any payment, it would be deemed that he has not made any declaration under the scheme.

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