TMI Blog1986 (9) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... sclosed sources under section 68 of the Income-tax Act, 1961 ? " The assessee is a private limited company and the assessment year concerned is 1973-74. The assessee manufactures radios, transistors, tape recorders and components used in radios and television sets. It has its head office at Hyderabad and a branch at Delhi. For the assessment year 1973-74, the assessee filed a return declaring a loss of Rs. 3,491 for the accounting year ending March 31, 1973. During the scrutiny of the accounts, the Income-tax Authorities noticed that the assessee had an account in its books for one Standard Radio Corporation, Delhi, which contained a number of transactions and at the end of the accounting year, the account showed a credit balance of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s by the Delhi branch. At the same time, there is no information forthcoming as to the persons who paid the cash found credited to the suspense account in the assessee's books. While the accounts were under scrutiny and the assessment proceedings were pending, the Voluntary Disclosure of Income and Wealth Ordinance of 1975 was promulgated to enable assessees to disclose income and wealth not otherwise declared in the returns filed by them. The assessee had apparently taken advantage of the aforesaid Ordinance and filed a declaration before the Commissioner of Income-tax for the assessment years 1973-74 and 1974-75. In the voluntary disclosure made for 1973-74, the assessee declared unaccounted income of Rs. 7,000 and for 1974-75 the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 256(1) of the Act having been rejected by the Tribunal, the assessee moved this court under section 256(2) of the Act and obtained a direction to the Tribunal to refer the case. That is how the present reference is laid before us. We have already stated the facts to the extent they are relevant. The short ground upon which the assessee claims non-assessability of Rs. 1,02,000 as income from undisclosed source is that an income of Rs. 7,000 with reference to the aforementioned sum of Rs. 1,02,000 was offered in the voluntary disclosure made which was accepted by the Commissioner of Income-tax. It is urged that consequently it is not open to the tax authorities to make an assessment of the sum of Rs. 1,02,000. It is said that the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the conclusion that the sum of Rs. 1,02,000 represented income from undisclosed sources falling to be assessed under section 68 of the Act. We may also point out that the filing of voluntary disclosure before the Commissioner of Income-tax does not have the automatic consequence of the assessee's explanation being accepted. It may be true, as claimed by learned counsel for the assessee, that the voluntary disclosure filed by the assessee was accompanied by a statement connecting the sum of Rs. 1,02,000. Under the Ordinance, the Commissioner was not required to make an enquiry into the correctness or otherwise of the voluntary disclosure made by an assessee. All that the Commissioner does is to receive the voluntary disclosure, accept th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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