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TMI Blog1987 (9) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... amily in their individual capacity under the Voluntary Disclosure of Income and Wealth Ordinance, 1975 ? " The assessee is a Hindu undivided family. The assessments for both the years were completed under section 143(3) of the Income-tax Act, 1961 (for short " the Act "). Subsequently, the books of account of the assessee and the other documents were requisitioned under section 132A of the Act from the custody of the Superintendent of Police, CBI, Cuttack. The assessee was summoned under section 131 of the Act and his statement on oath was recorded by the Income-tax Officer. The books of account and the documents were scrutinised with reference to his statement. The Income-tax Officer, after verification of the accounts found that various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal, however, rejected this contention of the assessee, but made the present references. Mr. B. K. Mohanti, appearing for the assessee, contended that the certificates granted under section 8(2) of the Disclosure Scheme proved the necessary amount of income disclosed by the other members of the family on which tax was also paid and, therefore, under the essence of the Disclosure Scheme, those individual members of the family were also entitled to the benefit of the same and that it should have been held that the investments made by them in the books of account of the joint family business stood sufficiently explained. Learned standing counsel, on the other hand, submitted that the concession or immunity under the Disclosure Sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undivided families was a fluctuating body and their shares in the capital assets of their respective families were liable to increase or decrease and could not be definitely predicated for the accounting year as a whole, unless a partition was made. Reference was made by Mr. Mohanti to the following observation of the Supreme Court (p. 230): "We do not see anything in the context of entry 86 which can be said to introduce an element of restriction or limitation while interpreting the word 'individuals'. Ordinarily, individuals would be treated as such and the capital value of their separate assets would be taxed ; but if individuals form groups and such groups own capital assets, it is difficult to say why the power to levy taxes on such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash credits appearing in the books of account of the assessee and that the disclosure scheme was limited only to the persons making the declaration. The reliance placed by Mr. Mohanti on the case of Biswanath Flour Mills v. CIT [1974] Tax LR 631 (Orissa), where the creditors had filed declarations under section 24(2) of the Finance (No. 2) Act, 1965, for the assessment year in question and it was held that the assessee was entitled to deletion of the credits standing in the names of the said creditors, also appears to be misplaced. There was no dispute in that case that the creditors had complied with the requirement of section 24(2)(c) of the Finance Act which was accepted by the Revenue. In my considered opinion, therefore, there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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