Instalments tendered by 3 October and credited by 5 October qualify as timely under the IDS circular.

The petitioner declared income under the Income Declaration Scheme, 2016, and was required to pay tax in three instalments. He claimed to have tendered the final instalment by cheque on 28 September 2017, but the cheque was encashed on 5 October 2017.

The Principal Commissioner treated the declaration as void because the payment was credited after the 30 September 2017 deadline. The petitioner challenged that order, relying on CBDT Circular No. 15/2019, which addressed delayed bank credit where payment had been tendered by the extended date.

1. Whether the petitioner’s declaration could be treated as void when he claimed to have tendered the final instalment by cheque on 28 September 2017, although it was credited on 5 October 2017

2. Whether, upon verification, the petitioner’s payment fell within the benefit provided by CBDT Circular No. 15/2019

Section 10 of the General Clauses Act, 1897, was the basis for the CBDT’s direction that payments made on 3 October 2017 would be deemed paid by the 30 September 2017 due date, because the intervening days were bank holidays.

Under paragraph 3 of CBDT Circular No. 15/2019, payments by cheque, RTGS, or electronic transfer tendered by 3 October 2017 and credited by the bank by 5 October 2017 are deemed paid by 30 September 2017.

The impugned order had treated the declaration as void under paragraph 8 of Circular No. 16/2016; the order also referred to forwarding the declared information for action under Section 197(b) of the Finance Act, 2016.

The petitioner’s asserted dates—cheque tendered on 28 September 2017 and encashed on 5 October 2017—potentially brought his payment within Circular No. 15/2019. The Court noted both the bank certificate supporting the encashment date and the Department’s submission that the petitioner appeared entitled to the circular’s benefit.

However, rather than conclusively determining eligibility, the Court directed the Principal Commissioner to verify the date the cheque was deposited and the date the amount was credited, and to apply the circular if the facts were confirmed.

If satisfied that the petitioner’s case was covered by Circular No. 15/2019, the respondent was directed to pass the necessary order granting the benefit of the Income Declaration Scheme, 2016, within six weeks after presentation of a certified copy of the judgment.