TaxTMI 
TaxTMI 
1999 (8) TMI 47
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....984-85 on September 12, 1986, could not be treated as disclosure of concealed or additional income and was not covered by the Amnesty scheme ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee-company was not entitled to immunity from the levy of interest under sections 139(8) and 215 and from the levy of penalty, under section 273(1)(a) and the Income-tax Act, 1961, as envisaged under the Amnesty scheme ?" The assessee is a limited company. It filed its return on November 29, 1985, declaring a total income of Rs. 11,69,100. Thereafter the assessee filed a revised return on September 12, 1986, declaring a total income of Rs. 11,77,590. The difference represent....
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.... original return. Therefore, that increase cannot be equated with the disclosure of concealed income by the assessee. The assessee has not furnished the inaccurate particulars of income in the original returns. Therefore, it cannot be said that the assessee has disclosed some income which has not been disclosed in the original returns. The Tribunal also has agreed with the view taken by the Income-tax Officer and the Commissioner of Income-tax (Appeals) that the assessee is not entitled to the benefit of the Amnesty scheme as no higher income has been disclosed by the assessee in the revised returns. Learned counsel, Mr. Poddar, submits and drew our attention to various circulars which were issued in 1985 and 1986. The date of benefit....
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.... that as per the provisions in case the assessee has disclosed fully and truly the income which he has not disclosed, within the period permissible under the circular of the Board, then the assessee will have immunities from the penalty under section 271(1)(a) or 271(1)(c) or 273. Circular No. 423, dated 26th June, 1985, provides that if the assessee has declared the income escaped and paid tax even if that income is concealed income of an earlier year, he can give an application to the Commissioner for the reduction or waiver of penalty and interest under section 273A of the Income-tax Act. The doubts arising out of those circulars are clarified by issue of further circulars in the form of questions and answers. One of the numbers is....
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.... been declared and disclosed and thereafter if for the purpose of the benefit of the scheme the assessee comes forward and discloses its true, full and enhanced income then in that case the assessee will be entitled for the benefit of the scheme, for the enhanced part of income. In the case in hand, the assessee before revising the return in the original return, has disclosed the -income to the tune of Rs. 11,69,100. Can that be said that the income disclosed in the original return has escaped or that is the enhanced or higher income for the purpose of the Amnesty scheme, our answer will be in the negative, i.e., the income which is disclosed in the regular return neither that can be said as concealed income nor undisclosed income nor a ....
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....be regularised by issue of formal notice under section 148 of the Income-tax Act. That means the provisions of section 147 are attracted for revised return and the definition of "escaped income" should be considered for the purpose of assessing income of the assessee under the Amnesty scheme. Learned counsel for the assessee drew our attention to the definition of "income escaped" given under the provisions of section 147 of the Act. Specially, he drew our attention to clause (b) of Explanation 2 to section 147 which provides that where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss,....
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....d by the assessee in the return of that particular year. Therefore, in our view, the assessee is not entitled for the benefit of the scheme for the income which is disclosed by the assessee in the original return. Therefore, whatever benefits are extended to the Amnesty scheme that can at best, be extended only to the income which has not been disclosed by the assessee. In this case even if we accept that definition of "escaped income" in the Explanation can be applied for the purpose of the Amnesty scheme, the tax effect is negligible as escaped income is Rs. 8,488. We will consider this issue in an appropriate case. Learned counsel for the assessee further submits that any return, even the regular return filed after the Amnesty s....