Clarifications regarding IDS, 2016
IN respect of the IDS, 2016 that shone on the Indian Taxation horizon a month and a half ago, the field authorities have informed the Board that some of the assessees have filed revised declaration (showing an income lower than the income earlier declared on account of some typographical or bonafide error) under the Scheme on or before 30.09.2016 to rectify error committed during filing of the original declaration.
Reference is also drawn to the reply to question No.1 contained in Circular No. 27 of 2016 dated 14.07.2016 which clarified that a revised declaration can be filed on or before the date of closure of the Scheme provided the undisclosed income in the revised declaration is not less than the undisclosed income declared in the declaration already filed.
The CBDT, therefore, clarifies-
++ Where jurisdictional Principal Commissioner or Commissioner is satisfied that the mistake in filing original declaration in Form No.1 appears to be genuine and bonafide, the concerned Principal Commissioner or Commissioner may address the same while processing the declaration. In such cases a facility has been provided to the jurisdictional Principal Commissioner or Commissioner to generate rectified Form No.2 on the ITD Systems.
The next query is as to how an Assessing Officer should address the cases where an assessee claims that the issue under pending assessment proceeding is covered by declaration made under the Scheme.
The Board's answer-
++ In cases where the assessee claims that an issue under an assessment proceeding has nexus with the declaration filed under the Scheme, the Assessing Officer may obtain a written undertaking along with relevant documentary evidence from the assessee about the issues and quantum of amount covered under the declaration having bearing on the pending assessment proceeding.
++ The Assessing Officer on being satisfied about the nexus of the amount declared under the Scheme, either in whole or in part, with the issue raised in the assessment proceeding, shall provide the benefit of such amount in the pending assessment provided the assessee duly pays the tax, surcharge and penalty payable under the Scheme. However, in respect of cases getting barred by limitation on 31.12.2016, such benefit shall be provided, if the assessee pays the first instalment i.e. 25% of the amount payable on the declaration filed under the Scheme.
CBDT Instruction 12/2016, Dated: November 11, 2016