Navjeevan Dharmi Associates Vs PCIT (Supreme Court of India)
Factual Background and Proceedings before the High Court
For A.Ys. 2014-15 and 2015-16, the Petitioner had not filed its Return of Income. After the introduction of the Income Declaration Scheme, 2016 (IDS, 2016), the Petitioner filed Form No. 1 on 4th August 2016 declaring undisclosed income for those assessment years. The total tax liability under the IDS, 2016 was Rs. 1,87,55,741/-. The Petitioner paid Rs. 25 Lakhs on 30th December 2017 and another Rs. 25 Lakhs on 15th February 2018, but made no further payment, although the entire payment could have been made latest by 31st January 2020. Consequently, the Petitioner was not entitled to any benefit under the IDS, 2016. TaxGuru has published material concerning the Income Declaration Scheme, 2016 and its Explanatory Notes.
Read HC Judgment in this case: IDS Declaration Failed but Tax Already Paid Must Be Credited: Bombay HC
For A.Y. 2017-18, the Petitioner filed its Return of Income on 15th February 2018. A notice under Section 148 was issued on 31st March 2021 on the basis that income chargeable to tax had escaped assessment within the meaning of Section 147. The reasons furnished referred to undisclosed income of Rs. 4,16,79,423/- declared under the IDS, 2016 for A.Ys. 2014-15 and 2015-16 and the failure to pay the total tax liability of Rs. 1,87,55,741/- by 31st January 2020. The undisclosed income was therefore proposed to be brought to tax in A.Y. 2017-18.
