1995 (8) TMI 84 - AT - Income Tax

Summary

Issues:
1. Whether the assessee is entitled to the benefits of the Amnesty Scheme for the amounts declared as income in the revised returns.
2. Whether the interest under section 215 should be modified or waived.

Analysis:

Issue 1:
The main issue in these appeals was whether the assessee, a partnership concern, was justified in claiming the benefits of the Amnesty Scheme for amounts declared as income in the revised returns for assessment years 1983-84 and 1984-85. The Revenue contended that since the search was conducted at the residential premises of two partners, the benefits of the Amnesty Scheme should not be available to the assessee-firm. However, the CIT(A) held that the assessee was entitled to the benefits as there was no prior detection of concealment in the case of the firm. The CIT(A) relied on a CBDT Circular and a judgment of the Madhya Pradesh High Court to support this decision. The Tribunal agreed with the CIT(A), emphasizing that the search was not at the business premises of the assessee-firm and that no investigation was conducted in the intervening period, concluding that the revised returns were eligible for the benefits under the Amnesty Scheme.

Issue 2:
The second issue raised by the Revenue was regarding the modification or waiver of interest under section 215 as directed by the CIT(A). The Tribunal found this issue to be consequential, as it was based on the decision that the assessee was entitled to the benefits of the Amnesty Scheme. The Tribunal confirmed the CIT(A)'s findings and held that the interest under section 215 should be modified or waived in accordance with the Board's circular. The Tribunal emphasized the binding nature of the Board's circulars on the IT authorities, citing a judgment of the Madhya Pradesh High Court to support this conclusion.

In conclusion, the appeals were dismissed, affirming the decision that the assessee was entitled to the benefits of the Amnesty Scheme and that the interest under section 215 should be modified or waived as per the Board's circular.