9911796707
TMI Blog2016 (7) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... DIVATIA, ADVOCATE COMMON ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) Since the common question of arises, both these appeals are being heard and decided together by way of this common oral judgment. 2. Tax Appeal No.1436 of 2006 challenges order dated 07/07/2006 passed by the ITAT in IT (SS)A No.33/Ahd/2001 for the block period 03/11/1986 to 20/10/1997 and the said appeal came to be admitted on the following questions of law: (A) Whether the Appellate Tribunal is right in law and on facts in setting aside the order passed by the Assessing Officer as confirmed by the CIT (A) and thereby deleting the addition of ₹ 75,50,000/-? (B) Whether the Appellate Tribunal has correctly appreciated the facts on record so as to allow benefit of Voluntary Disclosure of Income Scheme (VDIS) to the assessee in respect of an amount of ₹ 75,50,000/-? 3. Whereas, Tax Appeal No.1467 of 2008 challenges the order passed by the ITAT in IT (SS) A No.73/Ahd/2001 for the block period 03/11/1986 to 20/10/1997 and the said appeal came to be admitted on the following questions of law: (1) Whether on the facts and in the circumstances of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me up for consideration before the Hon'ble Bombay High Court in case of Uma Corporation v. Krishna Prabhakar, Assistant Commissioner of Income Tax Ors., (2006) 204 CTR (Bom) 282 wherein in paragraph No.6 the said view as referred earlier has been taken and notice issued to the assessee came to be dismissed. 5.2 He has also contended that identical issue was also raised before the Hon'ble High Court of Allahabad in case of Bhagwat Prasad v. Commissioner of IncomeTax (2003) 183 CTR (All) 626 wherein it has been held that once a valid certificate had been granted to the petitioner by the CIT under the VDIS 1997, he was entitled to the immunity under Section 68 of the Finance Act, 1997 and the impugned proceedings under Section 158BD taken against the petitioner were illegal. Lastly, he contended the ITAT's order is just and proper and no interference is required at the hands of this Court. 6. Having heard the learned Counsel for the parties and having gone through the decisions cited at the bar, this Court is of the opinion that the issue involved in this matter is squarely covered by the decisions referred by the learned Counsel for the respondent. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries made in the books of account or any other record along with the declaration in duplicate. The purpose behind the scheme providing for making of entries in the books of account or any other record is to ensure that the same declared income (asset) is not relied upon to explain away some other income (asset) by an assessee in subsequent proceedings. There is one more reason. Under section 73 of the VDIS, a declarant is not required to pay wealthtax where the voluntarily disclosed income is represented by cash, bullion, other assets specified in section 73(1) of the Scheme but such immunity from payment of wealthtax is for the assessment years for which declaration is made. Meaning thereby, the declarant is required to show that the corresponding wealth, relatable to such income/asset declared under the VDIS, is returned for the subsequent assessment years. Thus, making of credit on the basis in the books of account or in other record assumes importance for the purpose of wealthtax payable for the subsequent assessment years also. The requirement of furnishing the copies of the entries in duplicate along with declaration form indicates that one set is retained by the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for any particular assessment year implies that the provident fund satisfies all the conditions under rule 4 of Part A of the Fourth Schedule to the Act and not sit in judgment over it. There is ample power conferred upon the Commissioner under rule 3 of Part A of the Fourth Schedule to withdraw at any time the recognition already granted if, in his opinion, the provident fund contravenes any of the conditions required to be satisfied for its recognition and if during the assessment proceedings for any particular assessment year the taxing authority finds that the provident fund maintained by an assessee has contravened any of the conditions of recognition, he may refer the question of withdrawal of recognition to the Commissioner but until the Commissioner acting under the powers reserved to him, withdraws such recognition the taxing authority must proceed on the basis that the provident fund has satisfied all the requisite conditions for its recognition for that year; any other course is bound to result in chaos and uncertainty which has to be avoided. Therefore, it is not open to the Assessing Officer to go behind the certificate issued by the Commissioner and by ignori ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
