TaxTMI 
TaxTMI 
2007 (4) TMI 300
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....T Act cannot be considered against the estimation of income from alleged Hawala business? 2. Whether assessee is entitled to claim any benefit of VDIS disclosure in block assessment period cases to avoid assessment in respect of the income which according to him he had already disclosed in VDIS as admittedly the estimated income did not exceed the disclosure made in VDIS?" Hon'ble High Court of Madhya Pradesh observed that this issue is considered by the Tribunal in para 8A which reads as under: "8A. Ground No. 5-In support of this ground the learned Authorised Representative draws our attention to the contents of page Nos. 36 and 37 of the paper book which are certificates under s. 68(2) of the Voluntary Disclosure of Income Scheme, 1997 respectively in the case of Shri Ramanand Tapadia (HUF) and the assessee, so far disclosure in the case of assessee is concerned. as apparent from the certificate it has been made against the investment in the immovable properties and nothing to do with money in question. This ground is thus rejected." The Hon'ble High Court considering the matter in detail ultimately remanded the matter to the Tribunal by setting aside the order of th....
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....2,000 which was deleted by the learned CIT(A) vide order dt. 15th Jan., 2003 which was upheld by the Tribunal in IT(SS)A No. 11/Ind/2001. Against the above addition of Rs. 20 lacs which was deleted partly at Rs. 12 lacs, the assessee and the Department preferred appeals before the Tribunal and the Tribunal vide order dt. 23rd Sept., 2003 set aside the matter to the AO by affording opportunity to cross-examine the persons vide para 6.2 as regards the addition of Rs. 8 lacs is concerned. Similarly, in the Departmental appeal in IT(SS)A No. 7/Ind/2001 deletion of addition of Rs. 12 lacs was also set aside and the matter restored to the AO. 7. It is submitted that the assessee had taken an alternative plea in its appeal in IT(SS)A No. 5/Ind/200l that without prejudice, the learned CIT(A) ought to have considered the availability of the amount which was disclosed under VDIS and as such should have held that this money is already with the assessee and is not taxable. However, the Tribunal in para 8A as referred to the above, did not accept the contention of the assessee. 8. The learned counsel for the assessee in view of the above facts submitted that the issue of Hawala commission....
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.... Jawahar Marg, Room No. 201/II- Floor, Indore (c) Rs. 2,50,000 1996-97 Cash in hand 2 Rs. 5,00,000 1997-98 Cash (out of this Rs. 2,50,000 were invested in property at UG-11, Sunrise Rower, 579, MG Road, Indore & balance in hand ------------- Rs. 18,12,525 -----------....
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....t shall have the meanings respectively assigned to them in those Acts. 64. Charge of tax on voluntarily disclosed income.-(1) Subject to the provisions of this Scheme, where any person makes, on or after the date of commencement of this Scheme but on or before the 31st day of December, 1997, a declaration in accordance with the provisions of s. 65 in respect of any income chargeable to tax under the IT Act for any assessment year- (a) for which he has failed to furnish a return under s. 139 of the IT Act; (b) which he has failed to disclose in a return of income furnished by him under the IT Act before the date of commencement of this scheme; (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the IT Act or to disclose fully and truly all material facts necessary for his assessment or otherwise, then, notwithstanding anything contained the IT Act or in any Finance Act, income-tax shall be charged in respect of the income so declared (such income being hereinafter referred to as the voluntarily disclosed income) at the rates specified hereunder, namely: (i) in the case of a declarant, being a company ....
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....esentative assessee in respect of the income of any other person, shall not be entitled to make the income of such other person, and any such other declaration, if made, shall be deemed to be void. 66. Time for payment of tax.-The tax payable under this Scheme in respect of the voluntarily disclosed income shall be paid by the declarant and the declaration shall be accompanied by proof of payment of such tax. 67. Interest payable by declarant.-(1) Notwithstanding anything contained in s. 66, the declarant may file a declaration without paying the tax under that section and the declarant may file the declaration and the declarant may pay the tax within three months from the date of filing of the declaration with simple interest at the rate of two per cent for every month or part of a month comprised in the period beginning from the date of filing the declaration and ending on the date of payment of such tax and file the proof of such payment within the said period of three months. 68. Voluntarily disclosed income not to be included in the total income.-(1) The amount of the voluntarily disclosed income shall not be included in the total income of the declarant for any asses....
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....son from making a declaration of such income for such year. There is total disqualification in respect of persons who have been subjected to search either directly under s. 132 or have been persons in respect of whose assessments. a requisition has been issued under s. 132A in respect of books of account or documents or assets in custody of any authority under the law. The income subjected to survey is also made ineligible for disclosure. There is thus total disability for persons who are subjected to search under s. 132 of the IT Act. It is needless to point out only to persons who have been searched or surveyed under IT Act, will not be able to avail the benefit of VDIS, 1997. Even on the satisfaction of the above points the true owner of such income. whether he is the person who is surveyed or searched, will loose the benefit of the scheme. Where materials relating to third parties are found, such third parties may be taking a risk. If they meanwhile, make disclosures of assets found during the search as is indicated in CIT vs. Amber Corporation (1994) 207 ITR 435 (Raj), in which it was held that availability of the right to disclosure of seized assets for the third party under ....
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....undisclosed income of the assessee. That income, although commonly described as 'intangible' is as much a part of his real income as that disclosed by his account books. It has the same concrete existence. It could be available to the assessee as the book profits could be." Hon'ble Madras High Court in the case of S. Kuppuswami Mudaliar vs. CIT (1964) 51 ITR 757 (Mad) held: "Where the IT authorities make an addition to the income of the assessee over and above the income as disclosed by the assessee, on an estimate basis, the amount so added must be treated as the real income of the assessee. It is not open to the authorities to take the view that the addition was only for purposes of taxation and that it should not be regarded as the true income of the assessee." Hon'ble Punjab & Haryana High Court in the case of CIT vs. Prem Chand Jain (1992) 102 CTR (P&H) 346 : (1991) 189 ITR 320 (P&H) held: "Held, that the Tribunal was right in law in holding that past intangible additions made in the case of the firm and allocated to the assessee's share could be taken into account in considering the unexplained investments of the assessee and these would also be available for set ....