1999 (8) TMI 47 - HC - Income Tax

Summary

Issues:
1. Interpretation of the Amnesty scheme under the Income-tax Act, 1961 regarding revised return disclosure.
2. Entitlement of the assessee to immunity from interest and penalty under sections 139(8), 215, and 273(1)(a) based on the revised return.

Analysis:
1. The case involved a limited company that filed a revised return declaring higher income, claiming it falls under the Amnesty scheme. The Income-tax Officer rejected the claim, stating the increase was due to statutory disallowance, not voluntary disclosure. The Commissioner of Income-tax (Appeals) and the Tribunal upheld this view, emphasizing that mere recomputation does not constitute disclosure of concealed income. The court analyzed circulars extending the scheme and clarified that benefits apply to undisclosed income only. The revised return adjustments included statutory deductions and a new claim for development allowance, resulting in a net difference of Rs. 8,488. The court concluded that only the additional income qualified for Amnesty scheme benefits.

2. The court considered the definition of "escaped income" under section 147 and relevant circulars to determine the extent of immunity under the Amnesty scheme. It noted that excessive deductions in the original return constituted deemed escaped income, but benefits applied only to undisclosed income. The court emphasized that the scheme aimed to uncover concealed income, not regular income reported in routine returns. As the revised return contained both previously disclosed and newly accepted income, only the additional income of Rs. 8,488 was eligible for Amnesty scheme benefits. Consequently, the assessee was granted immunity from interest and penalty solely on the additional disclosed amount.

In conclusion, the court ruled that the assessee's additional income of Rs. 8,488 was covered by the Amnesty scheme, entitling them to immunity from interest and penalty on that specific amount. The judgment clarified the scope of disclosure under the scheme, emphasizing that benefits apply to undisclosed income only, not income routinely reported.