Voluntary disclosure scheme benefit denied where prior reassessment notice existed and certificate was validly revoked

A disclosure under the Voluntary Disclosure of Income Scheme, 1997 was held ineligible where reassessment notice had already been served and the income had been shown in earlier returns, because the scheme excluded income already assessable after such notice. The declaration was treated as involving suppression of the prior disclosure and misrepresentation of the character of the income. The authority was also held to have incidental power under Section 21 of the General Clauses Act, 1897 to withdraw or rescind the certificate in the absence of a statutory bar. The certificate was therefore validly revoked, and scheme benefit denied.

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Issues: Whether the petitioner was entitled to retain the benefit of the Voluntary Disclosure of Income Scheme, 1997 despite prior notices under the reassessment provisions and whether the authority could revoke the certificate issued under the scheme by invoking Section 21 of the General Clauses Act, 1897.

Analysis: The petitioner had already been served with notice under the reassessment machinery before the scheme was invoked, and the disclosed amount had been shown in earlier returns. The scheme itself excluded income assessable for which notice under the specified provisions had been served before commencement. On the facts, the declaration under the scheme was held to have been made by suppressing the earlier disclosure and by misrepresenting the nature of the income. The power to issue the certificate was treated as carrying, in the absence of a statutory bar, the incidental power to withdraw or rescind it under Section 21 of the General Clauses Act, 1897.

Conclusion: The certificate under the Voluntary Disclosure of Income Scheme, 1997 was validly revoked, and the petitioner was held not entitled to the scheme benefit.

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