2005 (8) TMI 101 - HC - Income Tax

Summary

Issues:
1. Appeal by Revenue against the composite order passed by the Income-tax Appellate Tribunal.
2. Deletion of additions by the Commissioner of Income-tax (Appeals) regarding estimated income.
3. Acceptance of returns filed beyond the period of the Voluntary Disclosure of Income Scheme by the Commissioner of Income-tax (Appeals).

Analysis:
1. The appeals were filed by the Revenue under section 260A of the Income-tax Act against the composite order of the Tribunal for the assessment year 1997-98. The Tribunal heard appeals against the order passed by the Commissioner of Income-tax (Appeals) regarding the deletion of additions. The assessees also filed cross-objections, which were later dismissed during the hearing.

2. The Revenue contested the deletion of additions of Rs. 4,00,000 and Rs. 3,50,000 in two separate matters by the Assessing Officer. The income was audited and disclosed under the Voluntary Disclosure of Income Scheme. Despite filing nil income returns, the Assessing Officer estimated the income for the assessment year 1997-98. The Commissioner of Income-tax accepted the returns under the Scheme but denied refunding the advance tax already paid. The Tribunal upheld the Commissioner's decision, leading to the dismissal of the appeals.

3. The main issue revolved around whether the Commissioner of Income-tax (Appeals) was correct in accepting the returns filed beyond the Voluntary Disclosure of Income Scheme period. The Commissioner justified the acceptance based on the extended filing deadline provided by a circular from the Central Board of Direct Taxes. As the returns were filed within the extended period, the Commissioner's decision was deemed appropriate. The Tribunal, based on factual findings, concluded that no substantial question of law arose, leading to the dismissal of the appeals.

In conclusion, the High Court upheld the Tribunal's decision, dismissing the appeals as no substantial question of law was found. The order was based on the acceptance of returns filed within the extended period under the Voluntary Disclosure of Income Scheme, thereby denying the refund claim by the assessees.