2017 (11) TMI 859

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....ncome tax authorities and also paid the requisite tax, but his declaration of VDIS was not accepted and it was rejected on the ground that the petitioner was not holding the assets on the date of declaration and it was declared invalid. Calling in question, legality, validity and correctness of that order, this writ petition has been preferred by the petitioner holding that his declaration was strictly in accordance with VDIS. 2. Return has been filed opposing the writ petition stating that since the petitioner was not holding the assets on the date of declaration therefore, it has been rightly declared invalid and the writ petition as framed and filed is liable to be dismissed. 3. Learned counsel for the petitioner would submit that ....

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....aid Scheme states as under: - "64. (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 section 65 in respect of any income chargeable to tax under the Income-tax Act for any assessment year- ....... (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 Scheme; ....... then, notwithstanding anything contained in the Incometax Act or in any Finance Act, income-tax shall be charged in respect of the income so declared (such income being hereinafter....

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....ay be issued to the Commissioners." 8. A careful perusal of the aforesaid clarification would show that it relates to declaration of voluntarily disclosed income claiming that the jewellery has already been sold prior to the date of declaration. In the instant case, admittedly and undisputedly, the petitioner has not declared any jewellery towards undisclosed income, whereas he has stated that he had already sold jewellery and computation sheet of capital gains has been filed, therefore, the said clarification would not be applicable to the facts of the present case. There is no enabling provision in the VDIS, 1997 directing holding of assets included in the statement of capital gains on the date of declaration. Therefore, the reason ass....