Voluntary disclosure immunity cannot be denied for missing return or acceptance certificate when disclosure is otherwise valid and accepted.

Immunity under the Voluntary Disclosure of Income and Wealth Ordinance, 1975 depended on a valid disclosure and compliance with the attendant requirements. Non-filing of the wealth-tax return with the disclosure under rule 5(2) was not, by itself, a fatal defect. Where the disclosed wealth-tax had been paid and the disclosure was otherwise accepted, departmental delay or failure to issue the acceptance certificate could not be used against the assessee. On that basis, immunity from penalty was upheld and the penalty under the Wealth-tax Act was cancelled.

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Issues: Whether the assessee was entitled to immunity from penalty under the Voluntary Disclosure of Income and Wealth Ordinance, 1975, despite not filing the wealth-tax return along with the disclosure and not producing a certificate of acceptance from the Commissioner of Wealth-tax.

Analysis: Immunity under section 15(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975 depends on a valid disclosure and compliance with the attendant requirements. The absence of the return filed with the disclosure under rule 5(2) of the Voluntary Disclosure of Income and Wealth Rules, 1975 was held not to be a condition that by itself defeats immunity. The decisive consideration was whether the disclosure had been accepted. The assessee had paid the wealth-tax on the disclosed wealth and complied with the other formalities. The departmental delay and failure to secure or issue the acceptance certificate could not be put against the assessee.

Conclusion: The assessee was entitled to immunity from penalty, and the penalty under section 18(1)(a) of the Wealth-tax Act, 1957 was cancelled.

Ratio Decidendi: Immunity under a voluntary disclosure scheme cannot be denied merely for non-filing of the return with the disclosure or for want of a departmental acceptance certificate, if the disclosure is otherwise valid and accepted.

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