Case Law Details
Sadhana R. Jain Vs CBDT & Anr (Bombay High Court)
Reading of the CBDT Circular dt. 28-3-2017, it would clearly emerge that while providing for a limited window, in cases where payments were made through banking channels but the deposit was made by the bank in the Government revenue few days after 30-11-2016 to condone the delay in such circumstances, no relaxation was granted in other cases, particularly involving individual reasons. The board in Circular cited reasons such as personal or emergency reasons, lack of liquidity, rush at banks or any other reasons, which can be attributable to the declarants. In all such cases, it was decided not to extend the time limit.
The impugned decision of the board, is well within the four corners of the Circular dated 28-3-2017. The IDS itself did not make any provisions for relaxation. The Scheme did retain the power of the board under section 119(2) of the Act. In exercise of such powers, the board laid down the areas where relaxation would be granted and consciously decided not to grant extension or condone delay in cases where reasons were attributable to the declarants. Under section 119(2) of the Act, the board can exercise power either in individual case or in case of the assessees as a class. Once the board decided the entire issue by taking into account declaratory as a class, while applying such decision to individual cases, no further flexibility was left open.
The CBDT Circular dated 28-3-2017, therefore, cannot be treated as the decision of the board abdicating its power under section 119(2) of the Act. It is, in fact, in exercise of such powers that the board took certain conscious decisions. It was not argued before us that the decision of the board was arbitrary or unreasonable so as to be struck down in as opposed to article 14 of the Constitution of India. In any case, when the legislature frames a special Scheme such as the present one, giving certain concession to the assessees who had till then not declared their incomes truly and fully, legislature can always lay down its limits of the concession to be granted.
As correctly considered by the CBDT in its impugned order dated 16-10-2017, such concession and excess indulgence in such cases, could have demotivating effect on honest tax payers making regular and prompt tax deposit.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
