TMI Blog1993 (2) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... of income shown in the second return of income. As regards the assessment year 1979-80, original return was filed on 19-2-1982 declaring loss of Rs. 4,020. Assessment was made under section 143(3) of the Act on 30-3-1985 on a total income of Rs. 43,360 which was subsequently reduced in appeal to Rs. 38,360. The assessee filed a fresh return of income on 2-3-1987 claiming it to be under Amnesty Scheme declaring total income of Rs. 38,360. The assessee also withdrew the appeal flied by him before the ITAT. Re-assessment was made under section 143(1) of the Act on 14-9-1987 accepting the total income shown as per the fresh return of income. As regards the assessment year 1980-81, original return was filed on 28-3-1983 showing total income at Rs. 3,490. Assessment was made under section 143(3) of the Act on 25-2-1986 on a total income of Rs. 44,190. The total income was reduced by the DC (Appeals) to Rs. 38,190. On 2-3-1987 the assessee filed a fresh return claiming it to be under Amnesty Scheme declaring a total income at Rs. 38,190. Re-assessment was made under section 143(1) of the Act on 14-9-1987. 3. For delayed submission of return of income in all the assessment years, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly comes forward with higher income in any assessment year, as per CBDT Circulars. The DC (Appeals), therefore, took a view that no penalty can be levied and the orders of the Assessing Officer was cancelled. 5. Being aggrieved, the department is in appeal before the Tribunal. Shri S. Mookherjee, learned departmental Representative, relying on the orders of the Assessing Officer has argued that the Amnesty Scheme declared by the Government as per the Finance Act, 1985 cannot be applicable to the assessment years 1978-79, 1979-80 1980-81. The assessee had already submitted returns of income on 19-2-1982 and 28-3-1983 in respect of three assessment years under consideration. The assessments were also duly completed by the Assessing Officer and the matter was also adjudicated upon by the first appellate authority allowing certain relief. The Assessing Officer has, therefore, rightly taken a view that the Amnesty Scheme, 1985 is not applicable for the aforesaid assessment years. The explanation furnished by the assessee was rightly rejected. The DC (Appeals) is, therefore, not correct in cancelling the penalty orders of the Assessing Officer by accepting the explanation furnished b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ases where assessments have been set aside on appeal or pending re-assessment being reopened under section 147 ? Answer - Yes, the assessee could avail of the benefit under the Circulars. Question No. 7 - Where any addition is contested in appeal, can such amount be declared ? Answer - Yes, except in search and seizure cases. Question No. 9 - Can search and seizure cases be covered under the Circulars ? Answer - No. The Circulars cover only suo motu declaration of income. " 7. In the Board's Circular No. 451 dated 17-2-1986, the questions and answers relevant to the present issue are clearly pointed out which are being reproduced as below :-- " Question No. 1 - What will be the procedure required to be followed by the assessee who wants to declare income or wealth in respect of the past years ? (a) in the cases where the assessments pertaining to those years are already completed ; (b) in the cases where the assessments in respect of those years are pending. Answer - In cases where the assessments are already completed the taxpayer should approach the concerned Commissioner of Income-tax with the full disclosure of the amounts of income and/or wealth concealed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e authority. The total income was reduced to Rs. 37,100 and Rs. 38,360 respectively. As regards the assessment year 1980-81 original return was filed on 28-3-1983 declaring income of Rs. 3,490 and assessment was made under section 143(3) of the Act on 25-2-1986. The total income determined at Rs. 44,190 was reduced by the first appellate authority to Rs. 38,190. The assessee filed fresh returns of income in respect of all the three assessment years on 2-3-1987 claiming it to be under the Amnesty Scheme declaring total income at Rs. 37,100 for the assessment year 1978-79 Rs. 30,360 for the assessment year 1979-80 and Rs. 38,190 for the assessment year 1980-81. It appears from the paper book filed by the assessee's Counsel that assessment order under section 143(1) of the Act was passed on 14-9-1987 for the assessment years 1979-80 and 1980-81 on the basis of returns of income filed on 2-3-1987, i.e., returns stated to have been filed under the Amnesty Scheme. It also appears that the assessee had duly paid self-assessment tax. The assessee also addressed letters to the Assessing Officer which was submitted on 2-3-1987 stating that the assessee has accepted the appellate orders of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 148 of the Act cannot go against the assessee. The assessee had done all that was required of him and the omission/commission on the part of the Assessing Officer cannot be held against the assessee. The income returned in the fresh returns filed on 2-3-1987 under the Amnesty Scheme was also much higher than the total income declared in the original returns, as already stated above. It may also be stated that the Amnesty Scheme was intended to encourage the defaulting assessees to come forward and declare higher income and to pay tax in order to have a clean slate without being penalised for defaults etc. There was also nothing in the Scheme to suggest that it was not applicable to all cases already assessed. On the contrary, it has clearly been pointed out in the aforesaid Circulars the extracts of which are reproduced above, that the Amnesty Scheme is applicable in the cases where assessments pertaining to earlier years were already completed. We, therefore, find that the case of the assessee is fully covered by the various Circulars issued by the Board clarifying the intents and purposes of the Scheme. The Circulars have to be considered in a liberal manner as it was m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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