Commissioner of Income Tax vs G. Venkatesan

N.V. Balasubramaniam, J.

This writ appeal is preferred against the judgment of the learned Single Judge, dated 30-10-2000 in W.P. No. 8686 of 2000.

The respondent herein had made a voluntary disclosure of his income under the Voluntary Disclosure of Income Scheme, 1997, but did not pay

the requisite tax and interest within the stipulated time but paid the tax after the due date for payment, with a delay of fifteen days. The

Commissioner Thiruchirappalli refused to issue certificate u/s 65 of the Voluntary Disclosure of Income Scheme in respect of the tax paid by the

respondent. Hence, the respondent filed the writ petition to accept the declaration and the issue the necessary certificate under the said scheme.

The learned Single Judge, following a decision in the case of Prahalatha Babu v. CIT (1999) 111 CTC 369, held that the assessee was entitled for

the benefit of the issuance of the certificate since the revenue had received a portion of the tax amount and also the statement by way of disclosure

and allowed the writ petition and directed the appellant herein to issue the necessary certificate. On the basis of that direction, the appellant herein

has issued the certificate u/s 68(2) of the Finance Act, on 29-8-2002.

Heard Mr. T. Ravikumar, senior standing counsel for the revenue and Mr. P. Chandrasekaran for the assessee.

The Apex Court, in the case of (2002) 83 ITD 774 , considered the Voluntary Disclosure Income Scheme and held that the courts have no

power to act beyond the terms of the statutory scheme under which benefits have been granted to the assessee and extend the time prescribed

under the scheme for the payment of tax, on considerations of equity to get the benefit of the scheme. In view of the said decision of the Apex

Court the judgment of the learned Single Judge holding that the respondent herein is entitled for the extension of time and issuance of the certificate

is not legally sustainable and it is accordingly set aside. Consequently, the certificate issued by the Commissioner on 29-8-2002 shall also stand

cancelled. The appeal is accordingly allowed. But, in the circumstances of the case, there will be no order as to costs. The C.M.Ps. are closed.