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TMI Blog2003 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... heme. Subsequently the said Ordinance was replaced by the Voluntary Disclosure Income and Wealth Act, 1976 (hereinafter referred to as the Voluntary Disclosure Act). In accordance with the said Voluntary Disclosure Scheme the petitioner filed a declaration in Form 'A' under Section 3 (1) of the Ordinance on December 30, 1975 disclosing her income by way of interests, dividends, capital gains etc. amounting to ₹ 4,54,640/- for the assessment years 1965-66 to 1975-76. In her declaration in the prescribed form the petitioner disclosed that during the said assessment years from 1965-66 to 1975-76. Income tax amounting to ₹ 65,989.32 in total was deducted at source by the companies at the time paying dividends. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as informed that the Central Board of Direct 'Taxes has rejected the petitioner's request for the following reason :- The declarant is not entitled to seek any benefit which is not strictly spelt out in the Voluntary Disclosure of Income and Wealth Act, 1976, which shuts out the operation of Income-tax Act once a declarant invokes it. The provisions of Section 199 of Income-tax, 1961, which are contained in Chapter-XII are not made applicable to the Voluntary Disclosure of Income Wealth Act, 1976 though Sections 221 to 227, 229, 231 and 232 contained in this Chapter- XVII are made applicable. (Please refer Section 7(2) of Voluntary Disclosure of Income Wealth Ordinance 1976). In view of the above mentioned legal position ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 4 in respect of any income chargeable to tax under the Indian Income-tax Act, 1922 (XI of 1922), or the Income-tax Act for any assessment year- (a) for which he has failed to furnish a return under Section 139 of the Income-tax Act, or (b) which he has failed to disclose in a return of income furnished by him under the Income-tax Act before the date of commencement of this Act, or (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the Indian Income- tax Act, 1922 (XI of 1922), or the Income-tax Act or to disclose fully and truly all material facts necessary for his assessment or otherwise. then notwithstanding anything contained in the India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as the Commissioner may, in his discretion, direct. (4) The investment in the securities referred to in sub-section (3) of Section 3 shall be made by the declarant within thirty days from the date on which the declaration is made by him under sub- section (1) of that section. 5. The Voluntary Disclosure Scheme under the Voluntary Disclosure Act was a special provision for payment of income tax at a special rate prescribed in the said Act and the declarant was to pay income-tax on the disclosed income at the-special rate prescribed under the Voluntary Disclosure Act. If the declarant had already paid any Income-tax on the disclosed income at or any time before submitting such declaration there is no justifiable reasons why said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill be ultimately required to pay a higher amount of income tax than X. Although X did not pay anything at any time before. Y, who at least paid something towards income-tax, would have to pay more than what was paid by X and what was payable as income-tax under the voluntary disclosure scheme. 7. As already pointed out that the Revenue was entitled to get Income Tax only. Whatever was paid as income-tax by the assessee/declarant on the disclosed income would have to be adjusted and the Revenue cannot be permitted to get more than the income-tax payable under the special Act. Under Section 198 of the Income-tax all sums deducted at sources under various provisions of the Income-Tax Act are deemed income received by the assessee and under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion does not apply to the facts of the present case. In the said case the assessee did not pay the tax. His house was searched and cash seized. The assessee therein requested the Authorities to adjust the tax amount from the cash seized by the Central Bureau of investigation. Such request was not accepted as, payment of tax for availing of the benefit of the Amnesty Scheme of 1985-86. In the present case tax has been paid and received by the revenue. 10. In its order the Board has referred to Section 7 of the Voluntary Disclosure Act to support its decision. Board has completely misread and misconstrued the provision of Section 7 (2) of the Voluntary Disclosure Act. The purpose and effect of Section 7 (2) of the Act was to adopt the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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