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TMI BlogClarification regarding the Press note and circulars issued by the Ministry of Finance regarding declaration of higher income or wealthX X X X Extracts X X X X X X X X Extracts X X X X ..... re required to be followed by the assessee who wants to declare income or wealth in respect of the past years? (a) in case where the assessments pertaining to those years are already completed; (b) in case 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 in various years and should also file returns for the relevant years. He should also produce evidence of payment of taxes before March 31, 1986. The filling of the returns will be regularised by issue of formal notices under section 148 of the Income-tax Act/section 17 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould pass the order of waiver of penalty, interest, etc., been fixed? Answer.-Since the Income-tax Officers have been instructed not to initiate penalty proceedings and be liberal in waiver of interest in such cases, question of waiver by CIT does not arise. The Income-tax Officers are, however, being instructed to finalise waiver proceedings by April 30, 1986. Question No.6.-Will the immunity apply in cases where cash credits which have been accepted as genuine by the Income-tax Officer while making the assessment originally are now disclosed as income? Answer.-Yes. Question No.7.-Where the investigations in the case of persons other than the assessee indicate concealment of income, would he be entitled to immunity under these circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is only up to 31st March, 1986. It may kindly be explained how the immunity can apply for the wealth-tax assessment for the year 1986-87? Answer.-The answer is simple. Where the wealth-tax payer discloses the correct wealth in the return for 1986-87, he does not require any immunity. The intention of the circular is that the correct not wealth in the return for the assessment year 1985-86, and earlier years should be disclosed and the immunity availed of Question No.11.-Whether ladies and minors can avail of the immunity given by the circulars? Answer.-Yes. In respect of their own income or wealth certainly. But taxpayers who try to introduce blackmoney and benami investments in the names of ladies or minors will be doing so at their own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 17 is received before March 31, 1986, and the assessee files the return after this date, will the benefit of the circular be available in case the assessee has deposited the tax due before March 31, 1986. Answer.-This problem will not arise if the assessee follows the procedure given in answer to question No. 1. Question No.17.-Whether while proceedings to make the assessment on the basis of the returns now filed, the Wealth-tax Officer would make enquiries regarding the suppressed or undervalued asset or travel further to find out escapement of wealth on any other account? Answer.-He will confine himself to the suppressed or undervalued assets. Question No. 18.-Whether the Income-tax Officer would act as aforesaid in case of jew ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to deposit tax before March 31, 1986? Answer.-There is not provision for payment of advance tax under the Wealth-tax Act. The return for 1986-87 would become due only in June or July, 1986. There is nothing to prevent the assessee showing the value of the asset in the return when it is filed. The questioner seems to presume that an assessee should be honest only for the purpose of availing of the benefit given by the circulars and should turn dishonest immediately thereafter. This is not the right way to approach the matter. Question No.23.-Whether the Income-tax Officer while making the wealth-tax assessment, can hold that the assessee has concealed income or furnished inaccurate particulars thereof which, according to him, is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her an assessee could take advantage of the circular and file an estimate of advance tax after December 15, 1985? Answer.-Yes. Question No.28.-Where an addition is contested in appeal, whether an assessee could make a declaration and agree to pay tax thereon? Answer.-Yes, the assessee should withdraw that appeal and make a declaration before the administrative Commissioner. In such a case, a lenient view will be taken, though such a declaration cannot be taken as entirely voluentary. Question No. 29.-Whether if a partner now declares income which he had not done earlier, and other partners have not, the cases of those partners of the firm would be reopened? Answer.-Yes, if the income declared is share income. Question No.30.-Whether a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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