No relief for Thane builder over non-payment of tax

A Thane-based developer, who failed to pay instalments under the Income Declaration Scheme of 2016, claiming he could not do so because of demonetization, has received no relief from the Bombay High Court. He is now liable to pay a minimum of 100 per cent, which can be extended to 300 per cent as penalty towards undisclosed income of Rs 11.59 crore, along with 30 per cent tax.

Last week, a division bench of Justice MS Sanklecha and Justice SC Gupte, turned down the plea of the petitioner, who sought directions from the court to the Principal Commissioner of Income Tax to accept a sum of Rs 1.19 crore, the tax amount payable on his declared undisclosed income. On September 30, 2016, the builder had filed a declaration under the scheme declaring a total undisclosed income of Rs 11.59 crore for 2014 and 2015. He was to pay a total of Rs 5.21 crore in tax. Of this, 25 per cent was to be paid before November 30, 2016. However, he failed to make the first instalment, claiming that he did not have cash to make the payments due to demonitization.

When asked if there were any provisions under the scheme to accept delayed payments, lawyers of both parties denied any provision for the same.