TaxTMI 
TaxTMI 
2003 (6) TMI 179
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....ed NRI foreign remittance and, therefore, assessments were reopened under s. 148 on 29th Aug., 1996. The assessees filed reply on 15th May, 1997, stating that the returns already filed may be deemed to have been filed in response to notice under s. 148. In the meantime, the assessees filed declarations under VDIS showing the amounts received through NRI foreign remittance to be the income. The chart showing details is as under: Sr. No. Name Date of filing original return Date of notice under s. 148 Date of reply Date of declaration under VDIS Amount declared Amount disputed 1. Ranjit Kaur 20-10-92 29-8-96 15-5-97 29-12-97 1,00,000 1,00,000 2. Naginder Singh 30-11-92 29-8-96 15-5....
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....er s. 148 holding that the income on the basis of which proceedings under s. 148 were initiated had already been disclosed under VDIS and such disclosure was accepted by the competent authority CIT and, therefore, AO was not justified in making reassessments. 4. Before us, learned Departmental Representative drawing our attention to ground No. 1 submitted that CIT(A) has erred in annulling the assessments. Assessments should not have been annulled because AO had reasons to believe while reopening, there was escapement and, therefore, the assessees have disclosed the same very income in declarations filed under VDIS. Filing of declarations proves that there were reasons to believe and the action initiated under s. 148 was valid. CIT(A) sh....
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....ll not be included in the total income of the declarant for any assessment year under the IT Act on fulfilment of the conditions enumerated in cls. (i) and (iii) of s. 68(1). (2) Nothing contained in any declaration under s. 64(1) shall be admissible in evidence against the declarant for the purpose of any proceeding relating to imposition of penalty or for the purposes of prosecution under the IT Act or the WT Act or the Foreign Exchange Regulation Act, 1973, or the Companies Act, 1956 (s. 71). (3) All particulars contained in a declaration under s. 64(1) shall be treated as confidential as provided in s. 72(1) (4) Exemption from wealth-tax is granted in respect of assets specified in a declaration made under s. 64(1) upto and inc....
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....y of the declaration made by the assessees. Even AO cannot add such income in assessments framed. We do agree with learned Departmental Representative that the assessments cannot be annulled, in view of the provisions under s. 68 of VDIS. Sec. 68 only provides for consequence of the income declared under VDIS that the income so declared has to be excluded from total income of the declarant for any assessment year under IT Act. Accordingly, we set aside the orders of CIT(A) and direct the AO to exclude the income declared under VDIS from total income assessed in reassessments. 5.1. Now coming to the additions made in respect of low withdrawals, we find that in original assessments framed no addition had been made on account of low househo....
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....antamount to reviewing the whole assessment. This could not be done..." Again at p. 234 it was held: "Thus, we are of the considered view that as per the law laid down by the apex Court in the case of CIT vs. Sun Engg. Works (P) Ltd. (1992) 107 CTR (SC) 209 : (1992) 198 ITR 297 (SC), when proceedings under s. 147 of the Act are initiated, the proceedings are open only qua items of underassessment. The finality of the assessment proceedings on other issues remains undisturbed. According to us it makes no difference whether the assessment proceedings have become final on account of framing of assessment under s. 143(3) of the Act or on account of non-issue of notice under s. 143(2) of the Act within the stipulated period. The amendments....