Voluntary disclosure immunity under the Act applies only to section 3(1) disclosures, not to search-and-seizure declarations.

Income declared under the search-and-seizure scheme in section 14(1) of the Voluntary Disclosure of Income and Wealth Act, 1976 is distinct from voluntarily disclosed income under section 3(1). The Act grants exclusion from total income under section 8 only to disclosures made under section 3(1), while section 14(1) operates as a separate mechanism for cases involving prior search and seizure and contemplates aggregation of the declared amount with other income for assessment. The immunity in section 16 is likewise confined to section 3(1) disclosures, so income declared under section 14(1) remains includible in total income.

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Issues: Whether income declared under section 14(1) of the Voluntary Disclosure of Income and Wealth Act, 1976 is entitled to immunity from inclusion in the total income of the assessee under section 8 of that Act.

Analysis: The Act makes a clear distinction between income voluntarily disclosed under section 3(1) and declarations made under section 14(1) in cases of prior search and seizure. Section 3(2) excludes from section 3(1) cases where notice under the Income-tax Act had already been served or where search and seizure had taken place. Section 8 grants exclusion from total income only to voluntarily disclosed income under section 3(1). By contrast, section 14(1) operates as a separate scheme for persons whose books or assets were seized, and sections 14(4) to 14(6) specifically contemplate aggregation of the declared income with other income for assessment. The immunity in section 16 is likewise confined to disclosures under section 3(1).

Conclusion: Income declared under section 14(1) does not get the benefit of exclusion under section 8 and can be included in the total income for assessment.

Ratio Decidendi: A declaration made under the special search-and-seizure scheme of section 14(1) is distinct from voluntarily disclosed income under section 3(1), and the immunity from inclusion in total income under section 8 applies only to the latter.

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