TaxTMI 
TaxTMI 
2003 (5) TMI 54
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....own. The petitioner in respect of the year ending March 31, 1994, relevant to the assessment year 1994-95 had purchased cast iron moulds and leased the same in favour of certain customers. In the respect of the year ending March 31, 1995, he purchased carbon dioxide gas cylinders of the value of Rs. 15,50,000. The same was purchased from DDK Industries, 612, GM Palya, behind BEML, Bangalore on September 11, 1994, which was supported by an invoice. The petitioner has referred to various details in this regard. The Central Government notified the Voluntary Disclosure of Income Scheme, 1997 ("the Scheme" for short). The petitioner submitted an application under section 65(1) in respect of the scheme, the petitioner claimed depreciation on mach....
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....pects and it cannot be reopened. He relies on Laherchand Dhanji v. Union of India [1982] 135 ITR 689 (Bom) and Hemalatha Gargya v. CIT [2003] 259 ITR 1 (SC), in support of his contention. Per contra, Sri Seshachala supports the order. After hearing learned counsel on either side, I have carefully perused the material on record. The Voluntary Disclosure of Income Scheme introduced in the year 1997 provides for certain benefits in the light of voluntary disclosure of income in terms of the statutory provisions. Admitted facts reveal that the petitioner had claimed depreciation of machinery and equipment in terms of annexure A. The same was accepted. Thereafter the respondents have conducted a search operation in the premises belonging t....
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.... apply in relation to-... (ii) the income in respect of the previous year in which a search under section 132 of the Income-tax Act was initiated or requisitioned, under section 132A of the Income-tax Act was made, or survey under section 133A of the Income-tax Act was carried out or in respect of any earlier previous year." A reading of the said provision would show that the income in respect of the previous year in which a search under section 132 was initiated shall not apply to section 64(1). The Central Board of Direct Taxes vide Circular No. 755 dated July 25, 1997, has clarified with regard to cases relating to search under section 132 by way of an answer to question No. 29: "Question No. 29: A search under section 132 of th....
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....ration is sought in terms of section 65(1) read with the rules. In the column for verification it is categorically stated that the information given by the declarant is correct and to the best of his knowledge and belief. When the information given in the declaration is found to be incorrect, any certificate issued pursuant to that incorrect declaration is also an incorrect certificate. Therefore, the respondents are right in recalling the certificate in the light of an incorrect declaration made by the petitioner. Even otherwise, when a power to issue a certificate is available, then the power to recall in the event of any fraud is always available to the authorities as otherwise it would result in encouraging the unscrupulous persons. The....