9911796707
TMI Blog1991 (4) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... 975-76 nor had the Wealth-tax Officer issued any notice to the petitioner as required under sub-section (1) and sub-section (2), respectively, of section 14 of the Wealth-tax Act. On June 23, 1975, eight separate returns were filed by the petitioner for the assessment years 1968-69 to 1975-76 disclosing the wealth of the petitioner. Proceedings for assessment on these eight returns could not take place and the matter remained pending with the Wealth-tax Officer. No notice as envisaged under sub-section (2) of section 16 of the Act was issued to the petitioner. Before any action could be taken in these returns, on October 8, 1975, the Voluntary Disclosure of Income and Wealth Ordinance, 1975 (Ordinance No. 15 of 1975) (hereinafter referred to as the "Ordinance"), was promulgated. Taking advantage of the scheme contained in the Ordinance, the petitioner, on December 10, 1975, made a voluntary disclosure of wealth under sub-section (1) of section 15 thereof before the second respondent at Patiala for the eight assessment years in question for which the petitioner had earlier failed to furnish return under section 14 of the Wealthtax Act. A declaration was made in accordance with secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to make the assessment in accordance therewith. As, in the meanwhile, a penalty notice, annexure P-4, in C. W. P. No. 174 of 1980 had also been issued, the petitioner prayed for quashing the same in the said writ petition only. The contention of the petitioner is that it had fully complied with the provisions of section 15 of the Ordinance by making a voluntary disclosure and benefit ought to have been given to it by making assessment under the provisions of the Ordinance instead of proceeding to assess it on the basis of the returns filed on June 23, 1975. The writ petitions have been contested by the respondents by filing reply on the affidavit of the Wealth-tax Officer, A-Ward, Shimla, by contending that, though the petitioner did not Me any return under sub-section(1) of its wealth by June 30 in every assessment year and no notice was issued to it under sub-section (2) of section 14 of the Wealth-tax Act, the petitioner did, on June 23, 1975, Me the returns for the assessment years in question which have to be treated as returns filed under sub-section (1)of section 14 of the Act. Therefore, in view of clause (a) of sub-section (1)of section 15 of the Ordinance, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the returns filed on June 23, 1975, the Ordinance was promulgated on October 8, 1975. The Ordinance, in fact, was a scheme announced by the Government for voluntary disclosure of undisclosed income and wealth which offered an opportunity to persons who had evaded tax in the past, to declare their undisclosed income and wealth and to pay tax thereupon on a reasonable basis and to return to the path of civic responsibility in future. A press note issued simultaneously on the promulgation of the Ordinance dated October 8, 1975, contained various particulars of the scheme and the background in promulgating the Ordinance. The Ordinance provided that the scheme for voluntary disclosure would apply only in relation to declarations made during the period from October 8, 1975, to December 31, 1975. The aforementioned press note contained various details of making declaration, particulars required to be furnished and the concessions and immunities available to the declarants. The Central Board of Direct Taxes, on October 15, 1975, issued Circular No. 180 giving Explanatory Notes on the provisions of the Ordinance. The Ordinance had made three different provisions, namely, provisions rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (2) of section 16 or as provided in section 17 of the Wealth-tax Act been issued to the petitioner. The requirement of section 15 of the Ordinance is that a person seeking to take advantage thereof should have failed to furnish a return under section 14 of the Wealth-tax Act. Since no return had been filed on or before June 30 of the corresponding assessment year, the returns filed on June 23, 1975, cannot be taken to be returns filed under section 14 of the Wealth-tax Act. A return can be said to have been furnished under section 14 of the Wealth-tax Act, as required by section 15 of the Ordinance, provided it was submitted in the prescribed manner setting forth the net wealth on or before June 30 of the corresponding assessment year. In case, no such return was filed before June 30 of the corresponding assessment year, then it cannot be said that the return filed subsequently was under section 14 of the Wealth-tax Act. Any declaration of the assets or wealth not made by June 30 of each corresponding assessment year and any declaration not made in pursuance of a notice issued under subsection (2) of section 14 of the Act is not the declaration referred to in clause (a) of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to net wealth assessable for any assessment year for which a notice under section 14 or section 17 of the Wealth-tax Act, 1957, has been served on the declarant before October 8, 1975." Since it is not the case of the respondent that any notice under section 14 or section 17 of the Wealth-tax Act had been issued to the petitioner and since the returns submitted by the petitioner on June 23, 1975, as held above were not returns filed under section 14 of the Wealth-tax Act, it has to be held that the petitioner had failed to furnish returns for the assessment years in question under section 14 of the Wealth-tax Act. In view of this, the net wealth or the value declared by the petitioner under section 15 of the Ordinance on December 10, 1975, was not required to be take into account for the purposes of any proceedings relating to imposition of penalty. By having issued the Ordinance, what was required was to encourage those persons who had evaded undisclosed wealth and to pay tax thereon. For this purpose, the scheme contained in the Ordinance provided an inducement in the form of waiver of penalty. The provisions contained in the Ordinance, as such, have to be liberally constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
