AI Drafter 
TaxTMI 
TaxTMI 
2003 (12) TMI 649
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....ry Disclosure of Income and Wealth and introducing a Voluntary Disclosure Scheme. Subsequently the said Ordinance was replaced by the Voluntary Disclosure Income and Wealth Act, 1976 (hereinafter referred to as the Voluntary Disclosure Act). In accordance with the said Voluntary Disclosure Scheme the petitioner filed a declaration in Form 'A' under Section 3 (1) of the Ordinance on December 30, 1975 disclosing her income by way of interests, dividends, capital gains etc. amounting to Rs. 4,54,640/- for the assessment years 1965-66 to 1975-76. In her declaration in the prescribed form the petitioner disclosed that during the said assessment years from 1965-66 to 1975-76. Income tax amounting to Rs. 65,989.32 in total was deducted at ....
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....e disclosed income. By letter dated May 9, 1980 the petitioner was informed that the Central Board of Direct 'Taxes has rejected the petitioner's request for the following reason :- "The declarant is not entitled to seek any benefit which is not strictly spelt out in the Voluntary Disclosure of Income and Wealth Act, 1976, which shuts out the operation of Income-tax Act once a declarant invokes it. The provisions of Section 199 of Income-tax, 1961, which are contained in Chapter-XII are not made applicable to the Voluntary Disclosure of Income & Wealth Act, 1976 though Sections 221 to 227, 229, 231 and 232 contained in this Chapter- XVII are made applicable. (Please refer Section 7(2) of Voluntary Disclos....
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....ment of this Act but before the 1st day of January, 1976, a declaration in accordance with the provisions of Section 4 in respect of any income chargeable to tax under the Indian Income-tax Act, 1922 (XI of 1922), or the Income-tax Act for any assessment year- (a) for which he has failed to furnish a return under Section 139 of the Income-tax Act, or (b) which he has failed to disclose in a return of income furnished by him under the Income-tax Act before the date of commencement of this Act, or (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Indian Income- tax Act, 1922 (XI of 1922)....
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....76, and the remainder, if any, on or before the 31st day of March 1977. (3) The security required to be furnished by a declarant for the purposes of sub-section (2) shall be in such form and in such manner as the Commissioner may, in his discretion, direct. (4) The investment in the securities referred to in sub-section (3) of Section 3 shall be made by the declarant within thirty days from the date on which the declaration is made by him under sub- section (1) of that section." 5. The Voluntary Disclosure Scheme under the Voluntary Disclosure Act was a special provision for payment of income tax at a special rate prescribed in the said Act and the declarant was to pay income-tax on....
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....some amount of Income-Tax but did not file any income-tax return. After introduction of the Voluntary Disclosure Scheme he disclosed his income to get the benefit of the said scheme. If Y is not given the credit of the Income-tax already paid by him Y will be ultimately required to pay a higher amount of income tax than X. Although X did not pay anything at any time before. Y, who at least paid something towards income-tax, would have to pay more than what was paid by X and what was payable as income-tax under the voluntary disclosure scheme. 7. As already pointed out that the Revenue was entitled to get Income Tax only. Whatever was paid as income-tax by the assessee/declarant on the disclosed income would have to be adjusted and the Re....
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....at the special rate under the Voluntary Disclosure Act. 9. Mr. Mitra has referred to a decision of the Gauhati High Court in Sri Jnanananda Sharma Pathak v. Commissioner of Income-Tax & Anr. reported in Vol. 263 Income-Tax Reports 667. The said decision does not apply to the facts of the present case. In the said case the assessee did not pay the tax. His house was searched and cash seized. The assessee therein requested the Authorities to adjust the tax amount from the cash seized by the Central Bureau of investigation. Such request was not accepted as, payment of tax for availing of the benefit of the Amnesty Scheme of 1985-86. In the present case tax has been paid and received by the revenue. 10. In its order the Board has referred....