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TMI Blog2003 (11) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... of income on March 31, 1998, declaring an income of Rs. 8,530. It was beyond the statutory period in terms of the provisions of the Income-tax Act. The said return was filed on March 31, 1998, and is a voluntary return according to the petitioner and it was filed before issuance of any notice in terms of section 142 or 148 of the Act. He paid the taxes payable in terms of the return income under section 140A of the Act. On October 15, 1998, the Income-tax Officer conducted a survey under section 133A of the Act in the petitioner's business premises. According to the petition averments, no materials were found either suppressing or omitting any of the purchases. The petitioner was advised to offer a sum of Rs. 3 lakhs under the said accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the order. Writ Petition No. 35344 of 2003 is filed by one Sri Prasad of Bangalore. He is a partner in the firm of M/s. Padmapriya Enterprises. His share income is exempt under section 10(2A) of the Income-tax Act (for short "the Act"). He, out of savings, gifts and presentations received on various occasions including his marriage has purchased a site on August 28, 1993, and the total cost of the site inclusive of stamp paper and registration fee works out to Rs. 2,25,000. The business premises of M/s. Padmapriya Enterprises was surveyed and during the survey, no discrepancies were noticed. The petitioner's investment in the site was noticed by the respondent. He explained his source and the presentations received on various occasions. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be adverting in the subsequent paragraphs. Per contra, Sri Seshachala, learned standing counsel, says that the respondent has strictly acted in accordance with law. His further submission is that no waiver is possible in the case of a return filed after search proceedings. He equally relies on some judgments of this court. After hearing learned counsel, I have carefully perused the material on record. It is unnecessary for me to refer to all the material particulars. The material facts would reveal that certain search proceedings were carried out in these two cases. It is only thereafter a return was filed and the tax was paid and it was accepted. However, interest was levied by the respondent and applications were filed under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f immovable properties in Gavipuram Extension, Bangalore, on August 28, 1993, and the source of investment was not explained convincingly. It is clear from the above that the return of income for the assessment year 1994-95 was filed only after detection by the Department during the course of survey, and that too only after issue of a notice under section 148. In view of these, both the basic preconditions about filing of return voluntarily and before any detection by the Department stands not met with." This finding, according to the petitioner, is unsustainable and according to the respondent, it is sustainable. The Chief Commissioner rules in the case on hand that it cannot be said that the interest can be waived since, according to him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der any such action involuntary. For if that be so, there would hardly be any disclosure made under the Income-tax Act which can be treated as 'voluntary', in the light of section 139 which creates a legal obligation for all those having a taxable income, to disclose the same in the prescribed form. It follows that the circumstances, conditions or constraints that make a disclosure under the Act 'involuntary' must be constraints other than obligations that arise under the Act, requiring the assessee to take a particular action." This court further ruled as under: "There was indeed no physical coercion used on the petitioners forcing them to file their returns, there may also have been no formal notice issued to the petitioners asking them ..... X X X X Extracts X X X X X X X X Extracts X X X X
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