2008 (4) TMI 542

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....ng of the assessment under section 147 of the Income-tax Act. 4. The facts, in brief, are that original assessment under section 143(3) of the Act determining total income of the assessee company at Rs. 6,36,60,711. The assessee made a disclosure under VDIS, however, he failed to pay due taxes, hence, the said declaration was not accepted. Thereafter, the Assessing Officer reopened the case because as per declaration made by the assessee under VDIS, the income was shown at Rs. 6,44,06,030, hence, there was an additional disclosure to the tune of Rs. 7,45,319. The assessee submitted that the income shown by the assessee had already even assessed in regular assessment and disclosure was made not for a particular year but for all the three ....

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....ation was not valid. For this proposition, the learned counsel relied on the decision of the Tribunal in the case of ITO v. Smt. Payal Gupta [2008] 24 SOT 30 (Chd.) (URO) 12 and on the decision the case of Inder Kumar Bachani (HUF) v. ITO [2006] 99 ITD 621 (Luck.). 6. The learned Departmental Representative, on the other hand, contended that the decision of the Tribunal in the case of Smt. Payal Gupta (supra) was distinguishable on facts as in the VDIS declaration, to assessee had stated that the impugned jewellery had been acquired during the year 1985, hence, the same could not be a subject-Matter of reassessment for assessment year 1988-89. Similarly, the case of Inder Kumar Bachani (HUF) (supra) was also distinguishable on facts. The....

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....fect that interest received was taxed on gross basis whereas the same was to be taxed only on net basis i.e., after taking expenditure incurred in connection with the earning of the same and if that aspect was taken into consideration, no income would remain liable to be assessed. The learned counsel also contended that it was a case of construction business and if assessments completed under section 143(3) of the Act for all the three assessment years were taken into consideration on consolidated basis, then income assessed under section 143(3) is higher than the income declared by the assessee under VDIS scheme. To substantiate this fact, the learned counsel drew our attention to page No. 16 of the paper book showing the year-wise chart w....