9911796707
TMI Blog1995 (9) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... resently under consideration, the relevant accounting period ended on 31-3-1986. Survey under section 133A of the Act was conducted at the business premises of the assessee after the end of the accounting period. During survey certain diaries were found in which income was noted at Rs. 6,15,078, whereas in the books of account, the income was shown at Rs. 2,58,463 only. The assessee filed the return on 30-9-1986, declaring total income at Rs. 2,08,260. In the income and expenditure statement filed along with the return, the receipts have been shown as per the diaries. The Assessing Officer completed the assessment on total income of Rs. 2,30,825 vide his order dated 6-3-1989 under section 143(3) of the Act. He directed charging of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was made out for non-levy of such interest. Regarding interest under sections 139(8) and 215, he directed that interest under the said sections be worked out as per law after giving effect to his appellate order, the same being only consequential in nature. Dissatisfied, the assessee is in further appeal before the Tribunal. 4. Inviting our attention to the copy of the acknowledgement receipt bearing No. 21719 (copy at page 1 of the paper book), the ld. counsel for the assessee submitted that the assessee filed the return on 30-9-1986 under the amnesty scheme. Before filing the return, the assessee paid self-assessment tax of Rs. 28,992, which is evident from the copy of challan available at page 2 of the paper book. The ld. counsel furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest charged under section 215 as also penalty levied under section 271(1)(c) of the Act. The ld. counsel concluded his arguments by urging that the return having been filed under the amnesty scheme, the assessee is entitled to immunities allowed thereunder. The CIT(Appeals) was incorrect in holding that the case of the assessee is not covered under the amnesty scheme. 5. The ld. DR, on the other hand, submitted that the assessee filed the return declaring higher receipts only after survey conducted by the Department. He argued that it was the survey operation, which brought to light large variation in the receipts reflected in the diaries found and those recorded by the assessee in the books of account. Relying on the Q. No. 19 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he return filed by the assessee on 30-9-1986, the assessee disclosed the receipts as per the diaries and claimed in the return that there was 'voluntary - declaration of income under new directives', the question for our consideration is whether, the claim of the assessee is tenable in the light of various circulars of the CBDT. 7. The ld. counsel for the assessee has argued that following question No. 4 raised by the Members, Bar Association and reply thereto given by the CC(Admn.) and CIT(A)-I, New Delhi, on 2-1-1986 supports the contention of the assessee :-- Q. No. 4 - Whether higher income can be shown in cases where assessments have been set aside in appeal are pending reassessment being reopened under section 147 ? Answer - Yes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, as it came forward and declared higher income in the return filed at the original stage itself. No doubt, the argument is tempting at the first sight, but the charm of this argument vanishes, when we give a look to the Circulars of the CBDT mentioned above. On perusal of the said circulars, we find that underlined theme therein is that the taxpayer should voluntarily make a full and true disclosure of his concealed income, prior to its detection by the ITO. It is implicit in the word 'conceal' that there has been a deliberate act on the part of the assessee to conceal, i.e., to hide the income. Shorter Oxford English Dictionary, IIIrd Edition - Volume 1, has given the meaning of the word 'Concealment' as " in law, the intentional suppr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he form of diaries, which eloquently proved the fact of concealment by the assessee of real receipt/income in the books of account maintained by it. If that be so, the question No. 19 and answer thereto in Board's Circular No. 451, dated 17-2-1986 will not render any assistance to the assessee. The expression 'before detection by the Department' has been clarified in the answer to Q. No. 19 in the following words :-- " If the ITO has already found material to show that there has been concealment that we would mean the Department has detected the concealment. If the ITO only had prima facie belief that would not mean concealment has been detected. " 12. As stated earlier, the Department had already found material in survey in the form of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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