TMI Blog1999 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of Rs. 10 lacs 89 thousand in construction of the aforesaid house/property. Out of this amount she could explain the expenditure of Rs. 5,42,544 but the balance amount of Rs. 5,46,756 could not be explained by her, therefore, she made a disclosure under the Voluntary Disclosure of Income Tax Scheme 1997, promulgated by the Government in accordance with s. 62 of the Finance Act, 1997 (Act No. 26 of 97). The petitioner submits that according to the scheme a person could make a declaration in accordance with the provisions of s. 65 of the Finance Act for any assessment year. Any income chargeable to tax has escaped assessment by reason of omission or failure on assessee's part to make return or to disclose fully or truly all material facts necessary for his assessment or otherwise. According to the petitioner, the declaration so made has to be accepted by the CIT and such income is not to be included in the total income. The petitioner not being in a position to explain her income made a declaration to the CIT on 30th Dec., 1997. The said disclosure was accepted by the CIT under s. 68(2) of the scheme. It is contended that the Government had assured that in respect of investme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18,510, receipts of gift of Rs. 90,000 from three sons, house property income of Rs. 21,765 on account of rent received and the investment of Rs. 5,82,444 allegedly made in the construction. According to the Department, as there was substantial difference between the investment estimated by the Department and that of registered valuer summons under s. 131(1)(d) was issued to the Valuation Officer of the Department. The Valuation Officer issued a notice to the assessee on 15th March, 1998, under s. 131(1)(d) for calling documents, etc. A reminder was required to be issued for submitting the documents by 17th April, 1998. Yet by another reminder, the petitioner was required to submit the documents intimating the date of inspection of property. As no documents were submitted a third reminder was issued for submitting documents latest by 31st July, 1998 giving the date of inspection as 17th and 18th of August, 1998. On 17th of August, 1998, the building was measured by the Valuation Officer from outside. The assessee filed a written submission submitting that on 17th Aug., 1998 the officer from the Valuation Office came to her residence and copy of the order passed in this case was sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n set out in cls. (a), (b) and (c) of s. 64(1) are not cumulative but alternative fulfilment of any of the conditions specified in the above said clauses entitles an eligible person to make a declaration under s. 65 in respect of the undisclosed income. 6. A declaration made under s. 64(1) relates to the income actually earned by the declarant The scheme only permits the bringing forward of income to tax, it does not require investigation of the claim of the declarant. If a person makes a declaration, the CIT is under an obligation to accept such declaration and to grant a certificate in that regard on fulfilment of certain conditions laid down in that behalf. Once a declaration is made under the relevant scheme, so far as a declarant is concerned, it will be a presumption of law that the amount is to be accepted. Thereafter, it will no longer be open to the Revenue to enquiry into the question whether in fact the amount so declared is the declarant's income or not or of the source from where the declarant obtained the money. It is however, required to be clarified that the mere charge of the tax on the amount declared under the Voluntary Disclosure Scheme cannot have the effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... books of account and other documents; and (d) issuing commissions. (1A) If the Director General or Director or Dy. Director or Asstt. Director, or the authorised officer referred to in sub-s. (1) of s. 132 before he takes action under cls. (i) to (v) of that sub-section has reason to suspect that any income has been concealed, or is likely to be concealed, by any person or class of persons, within his jurisdiction, then, for the purpose of making any enquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-s. (1) on the IT authorities referred to in that subsection, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other IT authority. (2) (3) Subject to any rules made in this behalf, any authority referred to in sub-s. (1) or sub-s. 1(A) may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this Act : Provided that an AO or an Asstt. Director shall not--- (a) impound any books of account or other documents without recording his reasons for so doin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid the matter was referred to the Departmental Valuation Officer/Cell on 5th March, 1998. 12. According to the petitioner, she had declared the true investment, therefore, the Department is not entitled to go for further valuation either by a private agency or through the Department valuation/cell. Learned counsel for the respondents submit that if on the basis of other information it is found that a higher amount was invested than the amount disclosed, then suitable proceedings under the IT Act can be taken against the assessee. 13. Sec. 64 of the Finance Act, 1997, simply provides that a person would be entitled to make voluntary disclosure of the income under the scheme. The effect is that the authorities are not entitled to make any investigation into the source from where he has earned the income, but s. 64 does nowhere provide that the declaration relating to the explained income would also be taken to be correct. In the present case, the declarant submitted before the Department that she had spent a sum of Rs. 10,89,000 for construction of the property. She could properly explain the amount of Rs. 5,42,444, the balance amount of Rs. 5,46,756 could not be explained b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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