Kamla Chandrasingh Kabali Vs PCIT (Bombay High Court)
Summary: The Bombay High Court allowed a writ petition filed by Kamla Chandrasingh Kabali seeking issuance of Form 4 under the Income Declaration Scheme, 2016. The petitioner had declared undisclosed income of Rs.2,39,08,854/- for assessment years 2011-12 to 2014-15 and was required to pay total tax, surcharge and penalty of Rs.1,07,58,986/- under the Scheme.
The Revenue had declined to issue Form 4 on the ground that only Rs.40,03,031/- had been paid towards tax and Rs.24,75,135/- had been adjusted towards TDS, leaving the balance liability unpaid. The Revenue also rejected the petitioner’s request to give credit for pre-deposited taxes, including advance tax and self-assessment tax, relying upon the Bombay High Court’s earlier decision in Umesh D. Ganore Vs. Pr. CIT, [2019] 104 taxmann.com 209 (Bombay).
The petitioner contended that the distinction drawn between TDS and advance tax was unsustainable. Reliance was placed upon CBDT Circular No.25 of 2016 dated 30th June 2016, which permitted credit for TDS in specified circumstances, and upon the Constitution Bench judgment of the Supreme Court in Brij Lal Vs. Commissioner of Income Tax, Jalandhar, [2010] 194 Taxman 566 (SC). The petitioner also relied upon the Delhi High Court decision in Kumudam Publications Private Limited Vs. Central Board of Direct Taxes, [2017] 79 taxmann.com 466 (Delhi), which, according to the petitioner, had not been disturbed by the Supreme Court when the Revenue’s Special Leave Petition (Civil) Diary No.33000 of 2017 was dismissed.
