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TMI Blog1989 (10) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... stated that by mistake the word " jewellery " was not mentioned in the disclosure petition and that subsequently, the assessee made a petition before the CIT for amendment of the certificate under section 8(2) of the above Act. The ITO made a reference to the CIT seeking clarification. The assessee's petition had been disposed of by the CIT. He has decided that there was no ground for interference in the matter of certificate under section 8(2) of the Voluntary Disclosure of Income and Wealth Act, 1976. This was communicated to the assessee by letter dated 17.1.85. In order to give the assessee an opportunity to explain the acquisition of the jewellery a notice under section 131 was issued to the assessee. She appeared before the ITO and stated that part of the jewellery was received by her at the time of her marriage. She had given a list of such jewellery. From the list it was found that there were eight items the value of which was Rs. 5,127 in 1942 when she was married. The value in 1975 is Rs. 31,508 as per Valuer's Report dated 29.12.75. The ITO noted that it was customary in our country to give the bride jewellery and ornaments at the time of marriage. Considering the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petition cannot be accepted. Since there was no evidence as to the acquisition of the value of the jewellery amounting to Rs. 72,049 the I.T.O. was justified to treat the same as appellant's income from undisclosed source under section 69A of the Income-tax 1961. The I.T.O.'s action is accordingly confirmed." It was only also contended before the AAC that the condition precedent to the initiate on of the proceedings under section 147(a) were not satisfied, that therefore, the re-assessment made under section 147(a) was ab initio void and without jurisdiction, that all the relevant facts and particulars and silver utensils, gold and diamond jewellery were disclosed at the time of original, assessment and that, therefore, the decision of the ITO to include the jewellery as undisclosed income of the assessee was a mere change of opinion which was not permitted under section 147. The AAC upheld the validity of the re-assessment by observing as under :--- " I have considered the contention of the Authorised Counsel of the appellant. It transpires from the relevant assessment records of the appellant that the income-tax return was filed by the appellant on 9-5-78 and the original a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 049 was male by the I.T.O. by mere change of opinion. The facts of the case go to show that the appellant had filed to disclose fully and truly all material facts necessary for her original income-tax assessment for the year under consideration. Therefore, I consider that the conditions necessary for initiation of proceedings under section 147(a) have been satisfied in this case. The I.T.O. was accordingly justified in initiating the proceedings under section 147(a). I, therefore, hold that the re-assessment made by the ITO under section 147(a) is according to law and hence valid. The appellant's ground in this regard is accordingly rejected. The assessment, therefore, stands confirmed." Aggrieved by the said order of the AAC the assessee preferred the present appeal before the Tribunal. 4. The assessee's counsel filed a Paper Book of 20 pages containing, inter alia, copy of the covering letter dated 31-12-75 addressed to the Commissioner, while Filing the petition under section 3(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975, Certificate of the Commissioner under section 8(2) dated 31-12-77, copy of the assessee's petition dated 25-2-82 for rectification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1976-77 filed by the assessee before the ITO. The arguments, of the Departmental Representative were to the following effect : In the Paper Book filed by the assessee, the assessee has not included copy of the form of declaration under section 3(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975 in " Form-A ". He has only given the covering letter filed along with the printed " Form-A " filled in and signed by the assessee. In the printed " Form-A ", the words " Silver utensils " only were written. Subsequently, the words, " gold ornaments and jewelleries " were interpolated in a different ink. This is evident from a mere look at the " Form-A ". The original Form-A is produced herewith before the Tribunal for its perusal and consideration. Even the letter enclosed along with the printed Form A there was interpolation. The words " gold and diamond jewellery " were subsequently inserted in paragraphs 6 and 9. The said enclosure letter, dated 31-12-75 from the Commissioner's file is also produced herewith before the Tribunal for its perusal and consideration. Copies of the same are also filed herewith for the record of the Tribunal. Subsequent to the making ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rused the same. In the said Balance Sheet there were certain hand written remarks by the ITO who made the original assessment. In the said Balance Sheet, on the assets side silver utensils and gold jewellery were shown at Rs. 42,287 Against the said item the ITO noted " covered by V.Dis." The assessee made the Voluntary Disclosure for an income of Rs. 81,000. It was shown as credit to the capital account on the liabilities side of the Balance Sheet. In the Balance Sheet it was shown as " Add :-- Voluntary Disclosure Rs. 81,000." Against the said item the ITO noted in his handwriting that " Certificate under section 8(2) is filed ". From this, it is apparent that the assessee has disclosed the primary facts of her having silver utensils and gold jewellery of Rs. 42,387 in the Balance Sheet for the assessment year 1976-77. She has also filed the certificate issued to her by the Commissioner under section 8(2) of the Voluntary Disclosure of Income and Wealth Ordinance Act, 1975 dated 31-12-77. Apparently, when the ITO made the Income-tax assessment on 5-8-78 he was satisfied. After completing the Income-tax assessment, the ITO commenced proceedings for Wealth-tax assessment on 21-3-81 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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