The Apex Court disposed of appeals filed by the Revenue against the Tribunal. The judgment held that undisclosed income declared under the VDIS scheme and accepted with issued certificates could not be added as undisclosed income in the hands of the assessee, dismissing the Revenue's appeals.
No order as to costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY NAGPUR BENCH, NAGPUR
INCOME TAX APPEAL Nos.109/03 & 115/03
Office Notes, Office Memoranda of Coram, appearances, Court's orders of directions and Registrar's orders.
Court's or Judge's orders.
Mr.Anand Jaiswal for the appellant. Mr.Dewani for the respondent.
CORAM : J.P. DEVADHAR AND B.P. DHARMADHIKARI, JJ. DATED : 4TH APRIL, 2007.
P.C. :
a. Whether, on the facts and in the circumstances of the case, the ITAT was justified in law in confirming the order of the CIT(A) deleting the addition of Rs.12,45,992/made on account of undisclosed income of the assessee ?
b. Whether, on the facts and in the circumstances of the case, the ITAT was justified in law in confirming the order of the CIT(A) apportioning the undisclosed income between the various persons including the assessee ?
c. Whether, on the facts and in the circumstances of the case, the ITAT was
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justified in law in deciding that the disclosure under the VDIS 1997 can be made in a case where no direct search is initiated though such case is interconnected with other search proceedings as far as the undisclosed income due to search is concerned ?
d. Whether the ITAT was correct in holding that the income pertaining to the assessee was disclosed under VDIS in the name of other persons in December 1997 even after the issuance of notice u/s.158BD on 20-06-1997 ?
e. Whether the income found during the search can be declared under VDIS despite the specific provisions of section 64(2)(ii) of the VDIS scheme 1997 ?
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search was not disclosed earlier but the same had been declared by the assessee as well as other related persons under VDIS. According to the Assessing Officer, the assessee was not entitled to avail the benefit of VDIS after the search and accordingly, the Assessing Officer completed the block assessment, assessing undisclosed income of the assessee at Rs.12,45,992/- and Rs. 16,55,413/- respectively from the said business.
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Therefore, the findings recorded by the Tribunal that the amounts declared under VDIS cannot be taxed in the hands of the assessee cannot be faulted.
(Judge)
(Judge)
kulkarni
3 issues framed by the court
Whether the Revenue was justified in adding income declared under the Voluntary Disclosure of Income (VDIS) scheme as undisclosed income of the assessee after a search operation.
Whether Section 64(2)(ii) of the VDIS scheme 1997 permits tax addition despite the income being declared by the assessee.
Whether the Income Tax Appellate Tribunal correctly held that disclosed VDIS income cannot be taxed in the hands of the assessee without a valid challenge to the disclosure certificate.
3 provisions across 2 enactments
Revenue
Assessee(s)
J.P. DEVADHAR
B.P. DHARMADHIKARI
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
