9911796707
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Issues involved:
The judgment addresses two main issues: 1. Whether the voluntary disclosure petition made by the assessee was within time. 2. Whether a certificate under section 8(2) of the Voluntary Disclosure of Income and Wealth Act, 1976, was a condition precedent for non-inclusion of the disclosed income. Issue 1: Voluntary Disclosure Petition Timing: The assessee contended that a deposit of Rs. 40,000 in December 1975 was earned over the past 10 years, not during the previous year. A disclosure petition was sent on December 30, 1975, but received on January 1, 1976. The Income-tax Officer treated Rs. 40,000 as income from undisclosed sources for the assessment year 1977-78. The Tribunal allowed the appeal, stating the disclosure was within time for benefits under the Ordinance. The court interpreted the word "before" in section 3(1) of the Ordinance to mean "up to" or "not after," citing precedents where "before" signified "up to." The legislative intent indicated the time limit extended until January 1, 1976, preserving the taxpayer's rights. Issue 2: Certificate Requirement for Relief: Section 8(1) of the Ordinance outlines three conditions for relief, including crediting the disclosed amount, paying income tax, and making required investments. The Tribunal was tasked with verifying if these conditions were met. The judgment clarified that obtaining a certificate under section 8(2) was not a condition precedent but a directive for the Commissioner to issue it upon application. The Tribunal correctly ruled that holding the certificate was not mandatory for granting relief. In conclusion, both issues were resolved in favor of the assessee, affirming the timeliness of the disclosure petition and clarifying the non-mandatory nature of the certificate under section 8(2).
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