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Issues:
- Justification of upholding addition of undeclared income under Voluntary Disclosure Act by the ld. AAC of wealth-tax. Analysis: The judgment revolves around the decision of whether the ld. AAC of wealth-tax was correct in upholding the addition of Rs. 2,71,300 to the assessee's net wealth as undeclared income under the Voluntary Disclosure Act. The Declaration under section 14 of the Voluntary Disclosure Act mandates the disclosure of assets in Form B as prescribed by the Voluntary Disclosure Rules, 1976. The assessee declared income of Rs. 5,02,000 but did not provide details of assets in the declaration form, leaving Column Nos. 4, 5, & 6 blank. The assessee argued that since the income was not represented by any assets, it should not be considered as part of their wealth. The revenue supported the AAC's decision. The Tribunal analyzed the facts and concluded that the assessee's argument was valid. The declaration showed that out of the disclosed income, Rs. 2,30,700 was paid as tax, leaving Rs. 2,71,300. The Tribunal noted that there was no evidence to suggest that this remaining amount was held as assets by the assessee. The department's basis for the addition was an inference that the amount remained with the assessee in the form of cash, which the Tribunal found unsubstantiated. The Tribunal emphasized that the decision rested on factual evidence, and since there was no proof of corresponding assets, the addition of Rs. 2,71,300 could not be sustained. Therefore, the Tribunal ruled in favor of the assessee, deleting the addition and allowing the appeal. In conclusion, the Tribunal held that the addition of undeclared income to the assessee's net wealth was not justified as there was no factual basis to support the existence of corresponding assets. The decision highlighted the importance of factual evidence in such matters and ruled in favor of the assessee, ultimately allowing the appeal and deleting the addition.
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