2014 (2) TMI 535

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.... "1. Whether on the facts and circumstances of the case, the Tribunal is right in law in deleting the assessment made under Section 7-A on the gold declared under voluntary disclosure of income scheme on turnover of Rs. 1176630/-? 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in ignoring the clarification issued in D.Dis.Acts. Cell-II/72705/98, dated 2.12.1998 wherein it was clarified that the gold jewellery declared under voluntary disclosure of income scheme and used for manufacture of jewels are liable to be taxed under Section 7-A of the Act under Entry 25 of Part B of the First Schedule with effect from 7.7.1996?" 2. The revision pertains to the assessment year 1997-1998. D....

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....c.7A of the TNGST Act.", wherein it is stated that in respect of the voluntary disclosure scheme, if an individual has disclosed and sold the gold as such, that will not attract Entry No.3 in Part B of the First Schedule or Section 7A of the Tamil Nadu General Sales Tax Act (for brevity, "the Act"). It is against the said order, the State has filed the present revision. 4. On a reference to Section 7A of the Act which relates to levy of purchase tax, which is as follows: "Section 7-A. Levy of Purchase Tax (1) Subject to the provisions of sub-section (1) of Section 3, every dealer who, in the course of his business, purchases from a registered dealer or from any other person, any goods (the sale or purchase or which is liable to tax....

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...., (1979) 120 ITR 49, has held as follows: "On a plain reading of Section 34(3)(b) it will appear clear that before that provision can be invoked or applied three conditions are required to be satisfied: (a) that the ship, machinery or plant must have been sold or otherwise transferred, (b) that such a sale or transfer must be by the assessee, and (c) that the same must be before the expiry of 8 years from the end of the previous year in which it was acquired or installed. It is only when these three conditions are satisfied that any allowance made under Section 33 shall be deemed to have been wrongly made and the Income Tax Officer acting under Section 155(5) will be entitled to withdraw such allowance. Further, Section 2(47) gives an ar....