Supreme Court dismisses plea to pay income, tax in old notes under Pradhan Mantri Garib Kalyan Yojana
NEW DELHI: The Supreme Court on Thursday dismissed yet another petition filed by a UP resident seeking to pay undisclosed income along with tax and penalty in old notes under the Pradhan Mantri Garib Kalyan Yojana.
Under the scheme, any citizen could deposit his old notes with a bank, provided he was willing to lock up 25 per cent of the money in bonds for four years and pay his taxes and penalties.
Besides this, the person would have to pay 30 per cent tax, 33 per cent surcharge and 10 per cent penalty. The Uttar Pradesh resident claimed that though he had tried to deposit unaccounted amount of Rs.33 lakh, the bank had turned him away. Under the scheme any person could deposit his undisclosed income in old notes between December 17, 2016 and March 31, 2017. Those who deposit it later, would have to pay tax and surcharge and penalty up to 85 per cent.
Those who do not disclose but are caught holding undisclosed income would have to pay tax and penalty upwards of 200 per cent. Petitioner’s lawyer told a bench of Chief Justice JS Khehar and Justices DY Chandrachud and Sanjay Kishan Kaul, that he only had an account with the J&K bank, but the bank still turned him away.
He argued that there was no reason for the bank to refuse to accept the money. But the bench led by the CJI dismissed the plea, saying, “Not once did you go and deposit. You only said that you want to deposit.”
“Did you go and deposit? Did you give in writing? If you had given in writing, they would have rejected in writing, then you had a case,” the CJI said. The petitioner insisted that there was CCTV footage showing that he went to the bank with the money and was turned away, but the bench refused to give him any relief.
The CJI also clarified that he would not be allowed to get the benefit of any relief he had not tried to deposit it under that scheme.
Under the scheme, any citizen could deposit his old notes with a bank, provided he was willing to lock up 25 per cent of the money in bonds for four years and pay his taxes and penalties.
Besides this, the person would have to pay 30 per cent tax, 33 per cent surcharge and 10 per cent penalty. The Uttar Pradesh resident claimed that though he had tried to deposit unaccounted amount of Rs.33 lakh, the bank had turned him away. Under the scheme any person could deposit his undisclosed income in old notes between December 17, 2016 and March 31, 2017. Those who deposit it later, would have to pay tax and surcharge and penalty up to 85 per cent.
Those who do not disclose but are caught holding undisclosed income would have to pay tax and penalty upwards of 200 per cent. Petitioner’s lawyer told a bench of Chief Justice JS Khehar and Justices DY Chandrachud and Sanjay Kishan Kaul, that he only had an account with the J&K bank, but the bank still turned him away.
He argued that there was no reason for the bank to refuse to accept the money. But the bench led by the CJI dismissed the plea, saying, “Not once did you go and deposit. You only said that you want to deposit.”
“Did you go and deposit? Did you give in writing? If you had given in writing, they would have rejected in writing, then you had a case,” the CJI said. The petitioner insisted that there was CCTV footage showing that he went to the bank with the money and was turned away, but the bench refused to give him any relief.
The CJI also clarified that he would not be allowed to get the benefit of any relief he had not tried to deposit it under that scheme.
