1990 (6) TMI 51 - HC - Income Tax

Summary

Issues:
1. Whether the petitioner is entitled to relief based on voluntary disclosure of income.
2. Interpretation of Explanation 2 to section 273A of the Income-tax Act.
3. Justification for imposing penalty and interest.

Analysis:

Issue 1:
The appellant filed a writ appeal seeking relief from the imposition of interest and penalty after admitting a total income of Rs. 2,50,000 following a survey at his premises. The appellant claimed that the revised return was filed under pressure and not voluntarily. The court noted that the appellant's own statements in the original petition and during the appeal indicated a lack of intention to make a voluntary disclosure. The court emphasized that the appellant's actions did not meet the criteria for voluntary disclosure, as required by the law.

Issue 2:
The court examined Explanation 2 to section 273A of the Income-tax Act, which provides conditions for deeming a disclosure as voluntary. The Explanation highlights the requirement of a full and true disclosure of income within fifteen days of seizure. The court found that the appellant's case did not meet these conditions, as the revised return was filed under duress and not voluntarily. The court concluded that the appellant could not avail the benefit of Explanation 2.

Issue 3:
The Revenue argued that the appellant was not entitled to any relief as there was no voluntary disclosure, and the revised return was a result of defects and discrepancies discovered during the survey. The court agreed with the Revenue, stating that the imposition of penalty and interest was justified in this case. The court emphasized that the appellant's actions indicated a lack of voluntary disclosure and an attempt to suppress actual income. The court dismissed the writ appeal, upholding the imposition of costs.

In conclusion, the court ruled against the appellant, emphasizing the lack of voluntary disclosure and justifying the imposition of penalty and interest. The court's decision was based on the specific facts and legal provisions governing voluntary disclosure of income under the Income-tax Act.