SANTOSH SHANKAR ASAWALE vs. THE PRINCIPAL COMMISSIONER OF INCOME TAX THANE AND ANR

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WP/2348/2021HC BombayHCBM01018837202113 January 2022Bench: HON'BLE SHRI JUSTICE K.R. SHRIRAM,HON'BLE SHRI JUSTICE N. R. BORKAR2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court observed that the writ petition did not contain any averment that the petitioner had made an application for refund to the concerned authority. The petitioner's counsel also agreed that such an application had not been made, making the petition premature to that extent. Therefore, the Court dismissed the petition as withdrawn. However, it granted liberty to the petitioner to apply to the concerned authority for a refund. The Court directed that the concerned authority should consider the refund application in accordance with the law and also take into account a judgment of the Bombay High Court in Pinnacle Vastunirman Private Limited V/s. The Union of India and Ors. (2021) 438 ITR 27 (Bom.). No issue was expressly left undecided, as the dismissal was on procedural grounds.

What were the facts?

The petitioner, Santosh Shankar Asawale, filed a writ petition before the Bombay High Court seeking a direction to the respondents (Principal Commissioner of Income Tax & Ors.) to refund an amount of Rs. 35,11,952/- paid under the Income Declaration Scheme 2016 (IDS). The petitioner had paid this amount but failed to pay the balance amount within the prescribed time. The IDS stipulated that failure to pay the full tax, surcharge, and penalty by the due date would render the declaration void. The petitioner argued that since his declaration was deemed never to have been made, the amount paid should be refunded. However, the Court noted that the petition did not contain any averment that an application for refund had been made to the concerned authority.

What were the issues?

1. Whether the respondents should be directed to refund the amount of Rs. 35,11,952/- paid by the petitioner under the Income Declaration Scheme 2016, given the petitioner's failure to pay the balance amount within the stipulated time, thereby rendering the declaration void as per the Scheme's provisions. Assessee's Contention: The petitioner argued that as per the Income Declaration Scheme, if the declarant fails to pay the tax, surcharge, and penalty by the specified date, the declaration is deemed never to have been made. Consequently, the amount already paid should be refunded. Revenue's Contention: The judgment does not record any specific contention from the revenue regarding the refund. However, the Court's observation that no refund application was made implies a procedural hurdle.

AI-generated summary — verify with the full judgment below

1/2 921i.WP-2348-2021.doc IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.2348 OF 2021 Santosh Shankar Asawale ….Petitioner V/s. The Principal Commissioner of Income Tax & Ors. ….Respondents ---- Mr. Mohammed Zain Khan for petitioner. Mr. Sham V. Walve for respondents. ---- CORAM : K.R. SHRIRAM & N.R. BORKAR, JJ.

DATED : 13th JANUARY 2022 P.C. : 1 We have considered the petition and one of the prayer in the petition is for writ of mandamus or any other writ, order or direction to respondents to refund the amount of Rs.35,11,952/- which petitioner had paid under the Income Declaration Scheme 2016 (the IDS). According to petitioner, petitioner had paid an amount of Rs.35,11,952/- but was unable to pay the balance amount under the Scheme within the time prescribed. 2 As per the Scheme, if the declarant fails to pay the tax, surchage and penalty in respect of the declaration made under Section 183 on or before the date specified under sub-section (1), the declaration filed by him shall be deemed never to have been made under this Scheme. Mr. Khan, therefore, requests that respondents be directed to refund the amount paid since as per the IDS, the declaration filed by petitioner shall be deemed never to have been made under the Scheme. Gauri Gaekwad GAURI AMIT GAEKWAD Digitally signed by GAURI AMIT GAEKWAD Date: 2022.01.17 12:12:04 +0530

2/2 921i.WP-2348-2021.doc 3 We do not find anywhere in the petition even an averment that such an application for refund has been made by petitioner. Mr. Khan also agrees that such an application was not made and therefore, to that extent, petition is prematured. \ 4 Petition dismissed as withdrawn. 5 Petitioner may apply to the concerned authority for refund, who shall consider the application in accordance with law and also consider while considering the application, a judgment of this Court in Pinnacle Vastunirman Private Limited V/s. The Union of India and Ors.1. (N.R. BORKAR, J.) (K.R. SHRIRAM, J.) 1. (2021) 438 ITR 27 (Bom.) Gauri Gaekwad

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