TMI Blog1970 (5) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner for those respective years - - - - - Dated:- 15-5-1970 - Judge(s) : K. L. ROY. ORDER K. L. ROY, J. - This is an application under article 226 of the Constitution for the issue of appropriate writs for cancelling and/or quashing certain alleged decisions said to be contained in two letters dated the 27th/28th November, 1967, and the 20th November, 1967, by the respondent-Income-tax Officer, and prohibiting the said respondent from proceeding to make any assessment on the petitioner for the years 1959-60 to 1964-65, and this rule was obtained on the 4th January, 1968. The facts are shortly these : The petitioner is the well-known partnership firm of Aminchand Payarilal whose partners are Shree Satya Pal, Shree Jit Pal, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articulars as mentioned therein. One of the conditions for the submission of a voluntary disclosure was that the person making the disclosure must pay the amount of income-tax as computed at the rate prescribed in the said section. The material provisions are in sub-sections (6) and (7) of that section which are as follows : " 68. (6) (a) Any amount declared by any person under this section in respect of which the tax referred to in sub-section (3) is paid shall not be included in his total income for any assessment under any of the Acts mentioned in sub-section (5) if he credits in the books of account, if any, maintained by him for any source of income or in any other record, the amount declared as reduced by the tax paid thereon under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount declared is represented by cash, etc., was answered as cash represented in the shape of hundis and interest and brokerage thereon and difference in assets from March 31, 1958, to March 31, 1964 ; item 6 which requires details of the financial years for which the income disclosed was earned and the amount pertaining to each such year was simply answered by saying from 1958-59 to 1963-64 financial years. Similarly, in the application for the second declaration item 5(i) was answered by stating cash represented by hundis and interest involved thereon while item 6 was similarly answered as 1958-59 to 1963-64 financial years. Trouble arose between the petitioner and the assessing authority when assessments for the years 1960-61 to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mplete copies of accounts for each creditor, their present address and also evidence to prove that the loans were genuine. The other impugned letter, that dated the 27th/28th November, 1967, contained the following prejudicial (according to the petitioner) statement, viz. : " Later towards the close of the office hours your representative, Shri J. D. Bhanot, filed a letter and argued that the assessments cannot be possibly proceeded with unless your statement of affairs was accepted ...... this claim of yours is not acceptable vis-a-vis the regular assessments and as mentioned in this office letter dated the 28th November, 1967, the assessment for each year has to be done separately in accordance with law the statement of affairs being on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosures and shown as the petitioner's undisclosed income can again be assessed he is certainly in error. But, he is not precluded from requiring the petitioner to produce evidence in support of other hundi loans which are not included in either of the two disclosures. It also appears that the petitioner has been proceeding under the assumption that the declaration of undisclosed income on the basis of the accretion in the net assets would cover all sources of undisclosed income. That is not correct. It is for it to explain to the Income-tax Officer each source of income disclosed for each year on which tax has been paid and the Income-tax Officer is under an obligation to exempt such items of income from the assessment of the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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