TMI Blog2014 (7) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... otal income of the declarant for any assessment year under the income tax Act. Once a particular income is included in the income of the person and taxed and such person pays the tax, the same income. Cannot be taxed in the hands of another person. In the instant case the amount has been taxed in the hands of HUF. Once the tax is paid for that undisclosed income, again the same income cannot be taxed in the hands of the member of the HUF, that is the assessee. Therefore, in the light of the provisions of VDIS scheme as well as the provisions of the Act, the Appellate Authorities were justified in holding that as long as the certificate is in force, the income which was the subject matter of the certificate cannot be taxed not only in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Sarees in proprietary concern in the name of M/s. B. Praveen Kumar at No. 14, Devatha Market, Bangalore. His son is also running a proprietary concern in the name of M/s. Prathik Creations at No.118, Devatha Market, Bangalore, dealing in shirt and pant pieces. On the date of search, the assessee and his family members had filed their regular returns of income up to assessment year 1995-96 only. Returns for the assessment years 1996-97 and 1997-98 were not filed. In the course of search, certain incriminating documents were seized, which revealed that the unaccounted business had been carried on by the assessee and his son only as proprietary concerns. There was no material to link the business activities of the assessee with any HUF. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ful examination of the entire material on record, held the Assessing Authority could not have assessed the income which was the subject matter of certificate in the hands of the individual and therefore, he set aside the order and allowed the appeal. He also held the said income belongs to HUF and liberty was reserved to the Authorities to proceed against the assessee in respect of the s aid amount in the hands of HUF under Section 158BD of the Act. Aggrieved by the said order, the revenue preferred an appeal to the Tribunal. 6. The Tribunal on reconsideration of the entire materials on record held, though the assessee could be the owner of the income, but once the department accepted the very income as belonging to some other person and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificate under the VDIS in the status of HUF had been obtained when the assessee had not declared any income in such status for the assessment year 1995-96, 1996-97 and 1997-98 nor maintained any books, registration under the Sales Tax Act, or any other evidence in that capacity and consequently recorded a perverse finding? (iii) Whether Appellate Authorities were correct in deleting the addition made by the Assessing officer of the undisclosed income in the status of the individual by holding that the income should be brought to tax in the hands of HUF by upholding a partition deed dated 01.12.1994 produced without there being any supporting evidence and consequently recorded a perverse finding? (iv) Whether the Appellate Author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nished by him under the Income-tax Act before the date of commencement of this Scheme; (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the income-tax Act or to disclose fully and truly all material facts necessary for his assessment or otherwise, then, notwithstanding anything contained in the Income-tax Act or in any Finance Act, income-tax shall be charges in respect of the income so declared (such income being hereinafter referred to as the voluntarily disclosed income) at the rates specified hereunder, namely:- (i) in the case of a declarant, being a company or a firm, at the rate of 35 percent, of the voluntarily disclosed income; (ii) in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iculars of the voluntarily disclosed income and the amount of income-tax paid in respect of the same . 11. From the aforesaid provisions, it is clear, once a person files an application under Section 64 in accordance with the provisions of Section 65 in respect of any income chargeable to tax under the Act, which earlier he has not offered it to tax, the Commissioner on consideration of such application can grant a certificate to him setting forth the particulars of voluntary disclosed of income and the amount of income tax pa id in respect of the same. Once such a certificate is granted, the amount of the voluntary disclosed income shall not be included in the total income of the declarant for any assessment year under the income tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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