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TMI Blog2024 (11) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... ich such declaration is made. We find force in the argument made by the AR that non-payment of tax under the IDS, 2016 against the income declared cannot change the character of the income declared under IDS, 2016 with respect to character of income assessable in the previous year in which such declaration was made under the Income Tax Act, 1961. As before the Ld. Revenue Authorities the assessee has submitted that the amount disclosed in Form No.1 filed under IDS, 2016 was nothing but the capital gains arising out of the agricultural land sold through M/s. Satya Sai Housing by the assessee family and other members in various capacities. These facts were not disputed by the Ld. Revenue Authorities. AO while framing the assessment has stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )-NFAC ] in DIN Order No. ITBA/NFAC/S/250/2023-24/1061500625(1), dated 26/02/2024 arising out of the order passed u/s. 144 of the Income Tax Act, 1961 [ the Act ] for the AY 2017-18. 2. Briefly stated the facts of the case are that the assessee has filed Form No.1 under Income Declaration Scheme, 2016 before the Pr. CIT-2, Visakhapatnam on 28/09/2016 by disclosing an amount of Rs. 2,15,48,400/- in the form of cash for the AY 2015- 16. However, the assessee has failed to pay the taxes payable as per the provisions of the Income Declaration Scheme, 2016 [ IDS ]. During the assessment proceedings, the Ld. AO invoked the provisions of section 197(b) of the IDS, 2016 and concluded that the income declared by the assessee shall be treated as inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing grounds of appeal: 1. The order of the Ld. CIT(A) is erroneous both on f acts and in law. 2. The Ld. CIT(A) erred in directing the AO to recompute the total income under the head capital gain merely by accepting the contentions of the assessee that the amount disclosed in IDS is nothing but capital gains arising out of agricultural land sold through M/s. Sri Satya Sai Housing. 3. The Ld. CIT(A) ought to have considered that as per section 187(3) of IDS, 2016 if the declarant f ails to pay the tax, surcharge and penalty in respect of declaration made under section 183 on or before the date specified under sub-section (1), the declaration filed shall be deemed never to have been made under the scheme. 4. The Ld. CIT(A) ought to have co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheme. The Ld. DR further submitted that as per section 197(b) of IDS, 2016 where any declaration has been made under section 183 but no tax, surcharge and penalty referred to in section 184 and section 185 has been paid within the time specified under section 187, the undisclosed income shall be chargeable to tax under the income tax Act in the previous year in which such declaration is made. The Ld. DR further submitted that if the declaration was invalid, no benefit regarding the head of income as claimed by the assessee as per the declaration can be allowed while invoking the provisions of section 197(b) of the Act. The ld. DR vehemently argued that considering the facts and circumstances of the case, the Ld. AO has rightly observed tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected the Ld. AO to recompute the total income in the case of the assessee in the HUF status under the head capital gains and therefore the decision of the Ld. CIT(A)-NFAC need not be disturbed. The Ld. AR strongly relied on the decision of this Bench in the case of the assessee in individual status in ITA No. 138/Viz/2022. 6. We have heard both the sides and perused the material available on record as well as the orders of the Ld. Revenue Authorities. As per section 197(b) of IDS, 2016 where the assessee fails to pay the tax as per the income declared under IDS, 2016 the undisclosed income shall be chargeable to tax in the previous year in which such declaration is made. We find force in the argument made by the Ld. AR that non-payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, the Ld. CIT(A)-NFAC has also rightly relied upon the decision of this Bench in the assessee s own case in individual status in ITA No. 138/Viz/2022, dated 10/08/2023. For the sake of brevity, the observations of the Ld. CIT(A)-NFAC are extracted herein under: 7. I have considered the assessment order, statement of facts submitted by the appellant along with Form 35 and the material on record. On perusal of the assessment order, it is seen that AO has made an addition of Rs. 2,15,48,400/- on account of income f rom unexplained sources u/s. 68 r.w.s 115BBE of the Act. 7.1. Further, in the case of Sri Jiyyana Venkatarayudu in his individual status (PAN: AXPPJ2351K), that Hon ble ITAT, Visakhapatnam in ITA No. 138/Viz/2022 dated 10/908/202 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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