TMI Blog2003 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... 64(2)(ii) of the Scheme and in the light of an answer to question No. 29, decided to cancel the certificate issued under section 68(2) of the Scheme. Notice was issued in terms of annexure C calling for objections. Objections were filed in terms of annexure D. After considering the objections, the respondents cancelled the certificate in terms of annexure E. Thereafter they have issued annexures F, F1 and F2, notices under section 148. Those notices provide for an escaped assessment in terms of section 147. These proceedings are challenged by the petitioner. - I am unable to accept the arguments of the petitioner. The petition stands rejected. - - - - - Dated:- 27-5-2003 - Judge(s) : R. GURURAJAN. JUDGMENT R. GURURAJAN J.- The petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners claimed to have purchased the cylinders is a non-existent entity. In those circumstances, the respondents in terms of section 64(2)(ii) of the Scheme and in the light of an answer to question No. 29, decided to cancel the certificate issued under section 68(2) of the Scheme. Notice was issued in terms of annexure C calling for objections. Objections were filed in terms of annexure D. After considering the objections, the respondents cancelled the certificate in terms of annexure E. Thereafter they have issued annexures F, F1 and F2, notices under section 148. Those notices provide for an escaped assessment in terms of section 147. These proceedings are challenged by the petitioner. The respondents have entered appearance and they ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd., the same was shown as the cylinders sold to leasing companies. As a matter of fact there was no manufacturing activity of whatsoever done by the DDK Industries. He has also stated that the cylinders actually shown to the leasing company were not there at all and the entire transaction was a sham transaction. In the light of the material available on record, the respondents have issued notice to the petitioner. It is stated in the notice that the declaration made by the petitioner is consequent to discovery of escaped income during search under section 132 carried out in the case of Mega Gas Pvt. Ltd., the alleged lessee in the lease transaction claimed by the petitioner. A reply has been submitted by the petitioner. It is surpri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search, make a disclosure of their income? Answer: Yes, but not in respect of income, assets, etc., seized during the course of the search or discovered as a result of the search." It cannot be forgotten that the Scheme has been introduced with the laudable object of ending the dispute between the parties. When there is no voluntary disclosure, then the petitioner cannot have the benefit of a beneficial scheme. The scheme is beneficial only to bona fide assessees and not to those who try to make an unlawful gain out of the said scheme. In these circumstances, I am clear in my mind that the respondents are fully justified in cancelling the certificate issued to the petitioner. Mr. Sarangan, learned counsel, however, tried to contend th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petition that the declaration was filed without any knowledge of the search. When the show cause notice was issued making a specific allegation, in this regard nothing prevented the petitioner from denying the same in its reply. The reply is submitted by a responsible chartered accountant. Therefore, the theory of "no" knowledge of search" cannot be accepted. If the petitioner has no knowledge he could not have made any averments in paras. 11 and 12 with regard to these transactions. He cannot be partly ignorant and partly knowledgeable in respect of a transaction. Therefore, the argument of ignorance on the part of the petitioner cannot be accepted. In these circumstances, I am unable to accept the arguments of the petitioner. The petit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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