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- Interpretation of the Amnesty Scheme under the Income-tax Act, 1961 - Eligibility of the assessee for benefits under the Amnesty Scheme - Relevance of search and seizure operations in determining eligibility for the Amnesty Scheme Interpretation of the Amnesty Scheme under the Income-tax Act, 1961: The case involved the interpretation of the Amnesty Scheme under the Income-tax Act, 1961. The Commissioner of Income-tax filed applications seeking a direction to refer the case to the High Court for answering a proposed question of law. The Tribunal had previously allowed the appeal of the assessee, holding that the conditions of the Amnesty Scheme were fulfilled, and penalty proceedings were unwarranted. The Tribunal found that no referable question of law was involved, leading to the filing of additional applications under section 256(2) of the Act for different years. Eligibility of the assessee for benefits under the Amnesty Scheme: The main contention was whether the assessee was entitled to benefits under the Amnesty Scheme due to search and seizure operations conducted before the declarations were made. The Tribunal concluded that the income declared was not the subject of search and seizure operations, as clarified by Circular No. 451 issued by the Central Board of Direct Taxes. The Tribunal emphasized that the purpose of the Amnesty Scheme was to unearth undeclared money and provide tax evaders with an opportunity to voluntarily declare income without revealing the source. Relevance of search and seizure operations in determining eligibility for the Amnesty Scheme: The Court highlighted the timeline of events, noting that the search and seizure operations occurred in January 1986, while the declarations under the Amnesty Scheme were made in March 1987. It was established that the income disclosed in the declarations was not part of the search and seizure operations. The Court emphasized that the eligibility for benefits under the Amnesty Scheme hinged on whether the income declared was linked to the search and seizure operations. The judgment was based on the fact that the income offered by the assessee was not subject to search and seizure, leading to the dismissal of the cases without the need for a reference. In conclusion, the judgment focused on the interpretation of the Amnesty Scheme, the eligibility of the assessee for benefits under the scheme, and the relevance of search and seizure operations in determining eligibility. The Court's decision was based on the factual findings that the income declared was not part of the search and seizure operations, leading to the dismissal of the cases without the need for further reference or consideration of a question of law.
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