ACIT Vs Jiyyana Venkatarayudu (HUF) (ITAT Visakhapatnam)
ITAT Vishakhapatnam held that non-payment of tax under the Income Declaration Scheme, 2016 against the income declared cannot change the character of the income declared under IDS, 2016.
Facts- The assessee has filed Form No.1 under Income Declaration Scheme, 2016 before the Pr. CIT-2 on 28/09/2016 by disclosing an amount of Rs. 2,15,48,400/- in the form of cash for the AY 2015-16. However, the assessee has failed to pay the taxes payable as per the provisions of the Income Declaration Scheme, 2016 [“IDS”].
During the assessment proceedings, AO invoked the provisions of section 197(b) of the IDS, 2016 and concluded that the income declared by the assessee shall be treated as income of the assessee in the year of declaration and brought the amount of Rs.2,15,48,400/- to tax U/s. 68 r.w.s 115BBE of the Act. Thereafter, AO also issued a show cause notice dated 02/12/2019 as to why the undisclosed income declared in IDS, 2016 should not be taxed and the assessment be completed U/s. 144 of the Act? Further, a notice U/s. 271 r.w.s 274 of the Act was also served on the assessee. Subsequently, a show cause notice was also issued to the assessee to show cause as to why a penalty U/s. 271F of the Act should not be levied for non-filing of the return of income before the due date as required U/s. 139(1) / 142(1) of the Act.
