9911796707
TMI Blog1989 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,27,191. The accounting year of the assessee relevant to the assessment year 1976-77 expired on September 7, 1975. On October 8, 1975, the President of India promulgated the Voluntary Disclosure of Income and Wealth Ordinance, 1975 (hereinafter referred to as "the Ordinance"), to provide for voluntary disclosure of income and wealth and matters connected therewith or incidental thereto. Under section 13 of the Ordinance, it was provided that where the voluntarily disclosed income is represented by cash (including bank deposits), bullion, investment in shares, debts due from other persons, commodities or any other assets specified in the declaration made under sub-section (1) of section 3 in respect of which the declarant has failed to furn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not accept the said contentions of the assessee and held that the valuation date should be taken as September 7, 1975, and that the assessee could not be given the benefit of the disclosure made by him under the Voluntary Disclosure Scheme, 1975, on December 29, 1975, because exemption under the said Scheme is to be allowed up to the assessment year 1975-76 and the assets disclosed are to be included in the assessment year 1976-77. On appeal, the Appellate Assistant Commissioner held that since no accounts were kept by the assessee in respect of items declared under the Voluntary Disclosure Scheme, the previous year in respect of income from assets from undisclosed sources could only be taken as the financial year and., therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing the value of assets disclosed under the Voluntary Disclosure of Income and Wealth Ordinance, 1975, from the net wealth of the assessee for the assessment year 1976-77 ?" We have heard Shri V. K. Singhal, learned counsel for the Revenue, in support of the reference and Shri Duli Chand Godha representing the assessee. The first question relates to the previous year in respect of the assets disclosed under the Ordinance. The question is whether the previous year should be taken as the accounting year ending on September 7, 1975, which was the previous year in respect of the business income of the assessee or it should be the financial year closing on March 31, 1976. The said question has to be considered in the light of the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ering the provisions of section 2(11) of the Indian Income-tax Act, 1922, containing the definition of the expression "previous year" in the context of income from undisclosed sources, has referred to the decision in Bishan Dutt v. CIT [1960] 39 ITR 534 (All) and has observed as under (at page 432) "The view expressed by the High Court was that there being nothing to show that any accounts in respect of the undisclosed source of income existed or were maintained or that the assessee exercised any option under section 2(11)(i)(a) in respect of such accounts, the only course open to the Department was to tax his income from undisclosed source on the basis of the financial year being the previous year. On that basis the amount could be taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained investments could not be the accounting year ending on September 30, 1968, but it should be the close of the financial year ending on March 31, 1969. In view of the principles laid down in the decision in Baladin Ram's case [1969] 71 ITR 427 (SC), it must be held that, with regard to the assets which were disclosed by the assessee under the Voluntary Disclosure Scheme of 1975, the previous year would be the financial year ending on March 31, 1976. This means that there were two accounting years, one was the accounting year in respect of the income from business which closed on September 7, 1975, and the other was the financial year ending on March 31, 1976, in respect of undisclosed income from other sources. In view of the definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Tribunal. If it is held that there was a partition of the Hindu undivided family on February 19, 1976, and the valuation date for the assessment year 1976-77 was March 31, 1976, the amount of Rs. 1,08,888 being the estimated value of the assets disclosed under the Ordinance has to be excluded from the wealth of the assessee for the assessment year 1976-77. Question No. 2 also must, therefore, be answered in the affirmative, i.e., in favour of the assessee and against the Revenue. For the above reasons, both the questions which have been referred for the consideration of this court are answered in the affirmative, i.e., in favour of the assessee and against the Revenue. No order as to costs. - - TaxTMI - TMITax - Wealt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
