Case Law Details
Sunil Wamanrao Sakore Vs Union of India (Bombay High Court)
In a recent judgment, the Bombay High Court has ruled in favor of a petitioner, directing the Income Tax Authorities to refund the deposit made under the Income Declaration Scheme (IDS). The case revolves around the adjustment of the deposited amount against an outstanding demand and highlights the court’s stance on the matter.
The petitioner had objected to the issuance of Form-3, as it did not take into account a sum of Rs.5,07,480/- already paid by the petitioner through various challans. After verification, a revised Form-3 was issued, considering the previously deposited amount. However, as of the specified date, the petitioner had not paid the entire revised amount. The petitioner contended that the amount deposited under the IDS should be adjusted against the revised Form-3, and failure to do so would result in the denial of the benefits under the scheme.
The High Court, supported by previous judgments and the apex court’s views, agreed with the petitioner’s contention. It held that the deposited amount under the IDS should not be forfeited or left unadjusted. Instead, it should be considered as part of a mathematical exercise to determine the petitioner’s claim under the DTVSV Act. The court emphasized that the purpose of the act is to resolve disputes and eliminate conflicts between the assessee and the revenue.
In conclusion, the Bombay High Court’s decision to direct the Income Tax Authorities to refund the deposit made under the IDS brings clarity to the issue of adjusting the deposited amount against outstanding demands. The court’s ruling emphasizes that the purpose and intent of the act should be honored, and any amount deposited under the IDS should not be forfeited or ignored. By considering the deposited amount as part of a mathematical exercise, the court ensures a fair resolution of disputes between the assessee and the revenue. The ruling sets a precedent for similar cases and provides assurance to taxpayers seeking the benefits of the IDS.
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