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TMI Blog2013 (7) TMI 854X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal was right in holding that 90% of dyeing charges ought not to be reduced from the 'profits of business' for the purpose of computation of deduction under Section 80HHC, disregarding the plain wording of Explanation (baa) to Section 80HHC of the Income Tax Act, as per which, 90% of any receipts by way of brokerage, commission, interest, rent, charges or any other receipt of a similar nature included in the profits has to be reduced from the 'profits of business'? " 2. The assessee herein filed a declaration under the Voluntary Disclosure of Income Scheme, 1997 (VDIS) before the Commissioner of Income Tax, Tamil Nadu - IV on 30.12.1997, declaring income in the form of value of assets at Rs.79,55,710/-. Admittedly, the assessee did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts about the possession of those assets anywhere prior to 31.12.1997. The Commissioner of Income Tax (Appeals) pointed out that the letter written by the assessee to the Income Tax Officer on 27.02.2002 revealed that it was only as regards the cash that the assessee had denied possession and not the other assets. The Commissioner further pointed out that having given a declaration as regards the assets offered under the VDIS Scheme, the assessee could not retract his own statement, unless there were evidences available with him to show that the declaration made was inconclusive or incorrect. In other words, it was always open to the assessee who made the admission, to contend that his admission was incorrect. In the circumstances, the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y made. 7. We agree with the submission of the learned Standing Counsel appearing for the Revenue. It is no doubt true that under the circular issued by the Commissioner, the declaration made by the assessee was to be placed for the information of the Assessing Officer for the purpose initiation of proceedings under Section 147 of the Income Tax Act. But that, by itself, would not lead to an automatic mechanical exercise of jurisdiction under Section 147 of the Income Tax Act. Given the fact that the assessee had disclosed the particulars of his income for the purpose of VDIS Scheme before the Commissioner who was the competent authority on the failure to comply with the terms of the VDIS Scheme, the declaration was forwarded to the respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation thus provided through VDIS Scheme certainly vests the necessary jurisdiction with the Assessing Officer under Section 147 of the Income Tax Act, to reopen the assessment. The observation of the Tribunal that the information was given as per the directions of the Additional Commissioner of Income Tax and that the Assessing Officer had not applied his mind independently, had no material, particularly in the context of the assessee's declaration as to his possession under the VDIS Scheme. In the circumstances, we have no hesitation in setting aside the order of the Tribunal and restoring the matter back to the Tribunal for considering the re-assessment on merits. Thus the Tax Case filed by the Revenue is allowed, holding that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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