Clarification - Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975 - Income Tax - 902/CBDT

INSTRUCTION NO. 902/CBDT Dated : December 3, 1975 Besides issuing circulars and Press Notes etc. explaining and clarifying provisions of the Ordinance, the Board have been answering queries made by various Commissioners of Income-tax. Some of the queries made and clarifications given which are likely to be of more than local interest, are as follows: (1) Question- Where a person declares any assets in form 'A' acquired in a particular year, what amount has to be declared in column No. 6 Whether the acquisition price of the assets to the assessee or the market value as on the date of the declaration will the year of acquisition as mentioned in the declaration be accepted by the department without any proof? Answer- Entries in column 6 of item 5 in Form 'A' should show the extent to which the income declared is represented by various assets. The total of the amounts shown in column 6 should tally with the amount of income declared u/s 3(1) of the Ordinance shown in column 2. The appreciation in value of the assets is not required to be declared. The nature and source of the income declared u/s 3(1) will not be questioned. The immunities provided under the Ordinance will be available in relation to the voluntarily disclosed income and do not cover any other income that may later be found to have escaped assessment. (2) Question- Can an assessee who has filed a petition u/s 271(4A) of the Income-tax Act, 1961, file a declaration u/s 3(1) of the Ordinance? Answer- He can, provided the conditions prescribed u/s 3 of the Ordinance are satisfied. (3) Question- In a case where a search had been ordered u/s 132 but no books and valuables were seized, can the assessee make a disclosure u/s 3(1) of the Ordinance? Answer- Since no seizure was effected, a disclosure u/s 3(1) can be made. (4) Question- In a case in which books or valuables were seized and the Income-tax Officer has passed an order u/s 132(5) computing the undisclosed income at a certain figure and if the assessee wants to disclose a figure higher than that computed by the Income-tax Officer u/s 132(5) can the assessee file a declaration u/s 3(1) of the Ordinance in respect of excess over the figure as determined by the Income-tax Officer u/s 132(5)? Answer- No. Regarding any undisclosed income relating to the previous year in which the search was made or any earlier previous year, declaration has to be u/s 14(1) of the Ordinance even in respect of the excess over the income determined u/s 132(5). (5) Question- Whether a declaration can be made in respect of the undisclosed income for an assessment year where a return has been filed and assessment made before 8-10-1975, but which has been set aside on or after that date? The answer given vide item (vii) of the Board's Circular No. 181 dated 25-10-1975 is 'Yes'. Will the answer apply to cases which fall u/s 14(1)? The doubt arises because of the bar specifically put into section 14(7), and its possible interpretation and the absence of such a provision u/s 3. Answer- Yes. "Assessment made" envisaged in section 14(7) is an assessment subsisting at the time the declaration is made. 2. In respect of declarations u/s 3(1), the declarant is entitled to obtain a certificate from the Commissioner stating the particulars of the voluntarily disclosed income, the amount of income-tax paid in respect of the same, the amount of investment made in notified securities and the date of such investment [Section 8(2)]. This is a certificate giving factual information and is to be issued only after the full amount of income-tax has been paid and the requisite amount has been invested in the notified Government securities. The certificate may be issued in the specimen form annexed (Annexure I). The certificates being issued by a particular Commissioner should bear a running serial number and their office copies should be kept in safe custody by the Commissioner. 3. The Voluntary Disclosure of Income and Wealth (Amendment) Ordinance, 1975 has been promulgated on 29th November, 1975.