1994 (5) TMI 25 - HC - Income Tax

Advance Tax, Amnesty Scheme, Application For Revision, Delay In Filing Return, Income Tax Act, Revised Return, Waiver Of Interest

Summary

Issues:
1. Extension of time for filing income tax return.
2. Amnesty Scheme application and revised return.
3. Waiver of interest under Income-tax Act.
4. Disallowance and addition to total income.
5. Jurisdiction of Commissioner in dismissing revision petitions.

Extension of time for filing income tax return:
The petitioner, a firm, sought an extension of time to file its income tax return for the assessment year 1984-85 until March 31, 1985, and eventually filed the return on March 31, 1986, disclosing a total income. The Income-tax Officer initiated an investigation upon receiving the return, and the petitioner later filed a revised return under the Amnesty Scheme in 1987, disclosing a higher total income. The Income-tax Officer, dissatisfied with the revised return, made additions to the total income returned, resulting in a higher taxable income.

Amnesty Scheme application and revised return:
The petitioner filed a revised return under the Amnesty Scheme after the Income-tax Officer's inquiries and investigations. The Commissioner of Income-tax dismissed the revision petitions, stating that the petitioner did not meet the conditions of the Amnesty Scheme as the revised return was not a true disclosure prompted by ongoing investigations. The Commissioner emphasized that the Amnesty Scheme requires a voluntary and true disclosure of income by the assessee.

Waiver of interest under Income-tax Act:
The petitioner challenged the interest demanded under various sections of the Income-tax Act, seeking a waiver. The Income-tax Officer rejected the waiver request, citing that the partners of the petitioner firm had not made corresponding disclosures and payments of tax. The appellate order substantially reduced the interest demanded, and the Commissioner upheld the decision to dismiss the revision petitions.

Disallowance and addition to total income:
The appellate order allowed the petitioner's appeal against the initial assessment, reducing the addition to the income and limiting the disallowances. The taxable income was adjusted accordingly. The Commissioner justified the dismissal of the revision petitions based on the inadequacies in the petitioner's disclosure and the failure to meet the Amnesty Scheme requirements.

Jurisdiction of Commissioner in dismissing revision petitions:
The petitioner contested the Commissioner's dismissal of the revision petitions, arguing that the Commissioner relied on new grounds different from those in the Income-tax Officer's order. The court rejected this argument, stating that the Commissioner, in a revision under section 264, had the discretion to base the decision on any available grounds. The court found no merit in the petitioner's jurisdictional challenge and dismissed the original petition without costs.