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2015 (8) TMI 617 - ANDHRA PRADESH HIGH COURTVoluntary disclosure of undisclosed income - VDIS - whether if a search has taken place under section 132 of the Act against an assessee, he is disabled from availing of the benefit under the Scheme in respect of any income referable to any earlier previous years? - Held that:- The non obstante clause contained in Chapter IV of the Finance Act, 1997, is not that wide enough. The net result is that the amount which was the subject matter of search was liable to be dealt with under Chapter XIV-B of the Act notwithstanding the fact that it was mentioned in the declaration filed under the Scheme. The only difference would be that the respondents would be under obligation to pay the differential tax if any. Whenever the search proceedings take place, an assessee would be exposed not only to higher rate of tax but also to the incidence of levy of interest and penalty. In the instant case, a senior official of the Department i.e., the Commissioner, who operated the Scheme itself, was of the view that the amount covered by search can be the subject matter of the benefit under the Scheme. It is only on a close analysis of the relevant provisions of law and the judgment rendered by this court, that it has emerged that the proceedings initiated under Chapter XIV-B of the Act do not get affected by the proceedings under the Scheme. When this is the disparity or complexity as to the understanding of the provisions of those enactments, the respondents cannot be exposed to the obligation to pay penalty or interest. We, therefore, allow the appeals, setting aside the common order dated October 17, 2002, passed by the Tribunal and upholding the orders passed by the Assessing Officer. We, however, direct that the respondents shall not be exposed to the liability of penalty, interest or prosecution. This facility shall be available to them if only they pay the differential tax payable under Chapter XIV-B of the Act within two months from today. - Decided in favour of assessee.
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