\u00a0Assessee filed a declaration under Income Declaration Scheme, 2016 (Scheme) disclosing certain undisclosed income. Total liability under the Scheme, comprising tax, surcharge and penalty, was computed at a certain amount. However, assessee could not pay the third and final instalment by due date. Consequently, in terms of section 197(b) of Finance Act, 2016, undisclosed income became chargeable to tax under the Income-tax Act in the previous year in which declaration was made. Assessee accordingly filed revised return and paid self-assessment tax of \u20b945 lakh. Subsequently, assessee paid balance amount due under the Scheme after treating said self-assessment tax as part-payment towards Scheme liability. Revenue, however, failed to issue Form-4 acknowledging declaration. On writ the Court held that since payment of self-assessment tax was made only because declaration under Scheme was deemed to have been rejected, such payment was, in substance, tax paid under Scheme and credit thereof ought to have been given on final payment under revived Scheme. Refusal of revenue to acknowledge such payment and failure to issue Form-4 was arbitrary and unsustainable in law. Court directed the revenue the entire exercise of giving credit and issuance of Form-4 and modifying the income and demand under the assessment order dated 11-12-2019 for the assessment year 2017-18 by passing a necessary rectification order shall be completed within a period of 60 days from the date of uploading of this order.\u00a0 (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
Income Declaration Scheme, 2016.
\nS. 197: Declaration-Payment of last instalment-The Court directed the revenue to complete the entire exercise of giving credit and issuance of Form-4 and modifying the income and demand under the assessment order dated 11-12-2019 for the assessment year 2017-18 by passing a necessary rectification order, shall be completed within a period of 60 days from the date of uploading of this order. [S.187(3), 197(b),264, Art. 226] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64223","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gHR","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=64223"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64223\/revisions"}],"predecessor-version":[{"id":64224,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64223\/revisions\/64224"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}