1983 (12) TMI 19

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....r section 8 from being included in the total income in the assessment is right in law ? " The assessee is a HUF deriving income from several partnership firms. For the assessment year 1973-74, the assessment was originally concluded on July 25, 1974, determining the total income of the assessee at Rs. 14,110. On August 30, 1974, the assessee filed a return of income disclosing a net income of Rs. 12,850. On September 29, 1975, there was a search under s. 132 of the I.T. Act in the business premises of the assessee and books of account and valuables were seized by the income-tax authorities. On October 8, 1975, the President of India promulgated an ordinance called Voluntary Disclosure of Income and Wealth Ordinance, 1975 (Ordinance No....

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....evant provisions of the Voluntary Disclosure Act and the Rules prescribed thereunder. Section 3(1) of the Voluntary Disclosure Act provides for charge of income-tax on the income voluntarily disclosed. Section 3(1)(c) reads: " 3. (1)....notwithstanding anything contained in the Indian Income tax Act, 1922 (XI of 1922), or the Income-tax Act or in any Finance Act, income-tax shall be charged in respect of the income so declared (such income being hereinafter referred to as the voluntarily disclosed income) at the rate or rates specified in the Schedule. Section 4 provides for particulars to be furnished in the declaration under s. 3(1). Section 5 provides for time for payment of income-tax at the rates prescribed under the Schedu....

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.... liable to tax for any assessment year up to and including the assessment year 1975-76. The provisions of s. 3(1) do not, however, cover the income for any assessment year which has not been disclosed in a return of income furnished on or after October 8, 1975, and the income for any assessment year for which the notice under s. 139 or s. 148 has been served on the declarant but the return for that year has not been filed by him before October 8, 1975. The provisions of s. 3(1) also do not apply in respect of income of the previous or earlier years if there was any search and seizure under s. 132 of the I.T. Act or under s. 37A of the W.T. Act. In other words, the income falling under the above said categories cannot be considered under the....

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....rtain benefits and immunities under clauses I and II of sub-s. (1) of s. 14. The declaration made under s. 14(1) must be in duplicate in Form prescribed under the Voluntary Disclosure of Income and Wealth Rules, 1975. The declaration, no doubt, has to be submitted to the Commissioner of Income-tax, but the Commissioner has to send a copy of the declaration to the ITO and the information contained therein may be taken into account for the purpose of proceedings relating to the assessment or reassessment of the income of the declarant under the provisions of various enactments. In other words, such income cannot be excluded from the total income of the declarant for the purpose of assessment. This would also be clear from sub-ss. (4) and (....