Interest on instalments refunded under IDS 2016 not payable as it was not voluntary tax payment

Jay Prakash Singhania Vs Union of India (Jharkhand High Court)

Interest on instalments refunded under Income Declaration Scheme not payable as it was not voluntary payment of tax

Jharkhand High Court held that instalments paid under Income Declaration Scheme, 2016 is allowed as refund. However, interest on the same is not payable as there was no voluntary payment of tax on self-assessment.

Facts- The petitioner applied under the Income Declaration Scheme, 2016 and declared undisclosed income being a sum of 4.00 crores. As per the manner prescribed, petitioner duly paid two instalments, but, failed to pay the 3rd instalment.

Accordingly, petitioner contended that the natural corollary of non-deposit of the amount in entirety, in view of the provision of Sub-Section 3 of Section 187 of the Finance Act, 2016 will be that such declaration made under Section 183 became non est in the eye of law and, therefore, he is entitled for the refund of the amount having been deposited up to two instalments, the total comes to Rs.90 lacs.

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