2026 (3) TMI 1177

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ts of the Case are that the assessee filed the return of income for the Assessment Year 2017-18 on 29.03.2018 declaring a total income of Rs. 6,53,060. Subsequently, information was received by the Assessing Officer ('AO') that the assessee had made a declaration under the Income Declaration Scheme, 2016 declaring undisclosed income of Rs. 25,62,000. The tax liability on such declaration amounted to Rs. 11,52,900. It was noticed by the AO that the assessee had paid only Rs. 5,76,451/- towards the tax liability under the said scheme and had failed to pay the balance amount within the time prescribed under the scheme. Based on this information, the AO formed a belief that income chargeable to tax had escaped assessment and initiated reassessm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....laration Scheme, 2016 in Form-1 on 26.09.2016 declaring undisclosed income of Rs. 25,62,000/-. The declaration specifically stated that the undisclosed income pertained to Assessment Year 2006-07. The ld. AR submitted that the assessee had made partial payments under the scheme by paying two instalments amounting to Rs. 5,76,451/- and had filed Form-3 evidencing such payments. However, due to financial constraints, the final instalment could not be paid within the prescribed time. It was contended that the AO erred in bringing the declared income to tax in Assessment Year 2017-18 by invoking the provisions of Section 69 of the Income-tax Act, 1961. According to the ld.AR, Section 69 can be invoked only where an investment is made in the rel....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enalty have been paid within the time specified, the undisclosed income shall be chargeable to tax under the Income-tax Act in the previous year in which the declaration is made. It was therefore contended that the Assessing Officer was justified in bringing the income to tax in Financial Year 2016-17 relevant to Assessment Year 2017-18. The ld. DR also relied upon the decision of the Tribunal in the case of M/s Nandu Atmaram Vajekar v. ITO (ITAT Pune), wherein similar principles were applied. 8. We have heard the rival submissions and perused the material available on record. The issue that arises for consideration is whether the AO was justified in taxing the amount of Rs. 25,62,000/- declared under the Income Declaration Scheme, 2016 ....