Voluntary disclosure immunity is personal to the declarant and does not stop inquiry into unexplained credits in another assessee's books.

Immunity under the Voluntary Disclosure of Income and Wealth Act, 1976 is confined to the declarant, and does not extend to another assessee whose books contain a corresponding credit entry. The partner's disclosure therefore did not prevent the income-tax authorities from examining the genuineness and source of the credit in the firm's assessment. Sections 8 and 18 were read as limiting the benefit, concession and immunity to the person who made the voluntary disclosure. Applying earlier Supreme Court authorities on similar disclosure schemes, the court held that the revenue may independently investigate whether the credit is explained and treat it as unexplained if the explanation fails.

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Issues: Whether disclosure made by a partner under the Voluntary Disclosure of Income and Wealth Act, 1976 barred the income-tax authorities from examining the genuineness and source of a credit entry found in the books of the assessee-firm.

Analysis: The only declarant under the Voluntary Disclosure of Income and Wealth Act, 1976 was the individual partner and not the firm. Section 8 of that Act grants immunity only to the declarant in respect of the voluntarily disclosed income, and section 18 removes any doubt by declaring that no benefit, concession or immunity is available to any person other than the declarant. The earlier Supreme Court authorities on analogous disclosure provisions likewise hold that a declaration by one person does not prevent the taxing authorities from investigating the true nature and source of a credit in the books of another person and from treating it as unexplained if the explanation is unsatisfactory.

Conclusion: The partner's declaration did not preclude examination of the credit in the firm's assessment. The answer to the referred question was in the negative and against the assessee.

Ratio Decidendi: Immunity under a voluntary disclosure scheme is confined to the declarant, and does not bar the revenue from independently enquiring into the genuineness and source of corresponding credits in the assessment of another assessee.

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