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2022 (7) TMI 283 - HC - Income TaxDisclosure of income under VDIS - set off of tax under VDIS with advance tax (including TDS) in regular course - assessee i.e. petitioner is an employee of United India Insurance Company, he gave the incorrect reason that there was a delay in payment of income-tax within the prescribed limit under Section 139 (1) due to the non-availability of the TDS certificate - Commissioner has dismissed the revision on the ground that the nature of assets of income disclosed under VDIS as well as in the regular IT returns is different. - description of assets shown in the VDIS applications is not at all match with the source of income shown in the return. No TDS has been deducted or advance tax has been paid with respect to assets declared under VDIS and now filing belated return of these to assessment years, the petitioner is avoiding income-tax by deducting the income disclosed in the VDIS HELD THAT:- The voluntarily disclosed income is not liable to be included with regular income declared in the return under section 139 as tax paid under VDIS is not liable to be refunded at any cost. The income tax return submitted under Section 139 is not liable to be reopened after availing of the VDIS. The source of income shown for voluntary disclose income and income source shown in the return under Section 139 is altogether different. Under Section 64 of the Finance Act only those persons are entitled to give declaration in respect of income chargeable under the tax under the Income Tax Act for any assessment year, firstly for which he has failed to furnish return under Section 139, secondly, which he has failed to disclose in a return of income furnished by him under the Income Tax Act before the date of commencement of the scheme, thirdly, which has escaped assessment by reason of the omission or failure. As per clause sub-clause (a), in this case, the petitioner did not furnish any return under Section 139 before 31.12.1997, therefore, in voluntarily disclosed income, he ought to have disclosed his all income from all the sources because till 31.12.1997, he did not disclose his any of the income by submitting the return under Section 139. He submitted the return under section 139, after 31.12.1997 i.e. 23.01.1998 to bring his case within clause 64 (1) (b). As submitted belated IT returns under section 139 but as per the requirement of section 64 (1)(b) that ought to have been filed before the date of commencement of the scheme. Since he did not submit any return under section 139 before this scheme, therefore involuntarily disclosed income, he ought to have disclosed his entire income. He cannot be permitted to commit mischief with the Act or VDIS by disclosing part of his income in VDIS and thereafter part of his income by submitting belated return in case of Earnest Business Services (P) Ltd (2017 (3) TMI 1185 - BOMBAY HIGH COURT] has rightly held that both the tax altogether different and there cannot be any adjustment between them. Section 70 and 71 mandate that the income disclosed in VDIS shall not be included income under section 139 means income which had already been disclosed and that assessment is not liable to be reopened. The petitioner in order to avail the undue benefit of this scheme has filed the belated return by contending that the filing of such belated return is permissible and claimed the deduction of income as well as the refund of the tax.
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