TMI Blog1999 (8) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... tional income and was not covered by the Amnesty scheme ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee-company was not entitled to immunity from the levy of interest under sections 139(8) and 215 and from the levy of penalty, under section 273(1)(a) and the Income-tax Act, 1961, as envisaged under the Amnesty scheme ?" The assessee is a limited company. It filed its return on November 29, 1985, declaring a total income of Rs. 11,69,100. Thereafter the assessee filed a revised return on September 12, 1986, declaring a total income of Rs. 11,77,590. The difference represented is an increase of the income by Rs. 8,488. The assessee claimed that the revised r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aled income by the assessee. The assessee has not furnished the inaccurate particulars of income in the original returns. Therefore, it cannot be said that the assessee has disclosed some income which has not been disclosed in the original returns. The Tribunal also has agreed with the view taken by the Income-tax Officer and the Commissioner of Income-tax (Appeals) that the assessee is not entitled to the benefit of the Amnesty scheme as no higher income has been disclosed by the assessee in the revised returns. Learned counsel, Mr. Poddar, submits and drew our attention to various circulars which were issued in 1985 and 1986. The date of benefit of the scheme has also been extended uptil 31st March, 1987. The original returns were f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not disclosed, within the period permissible under the circular of the Board, then the assessee will have immunities from the penalty under section 271(1)(a) or 271(1)(c) or 273. Circular No. 423, dated 26th June, 1985, provides that if the assessee has declared the income escaped and paid tax even if that income is concealed income of an earlier year, he can give an application to the Commissioner for the reduction or waiver of penalty and interest under section 273A of the Income-tax Act. The doubts arising out of those circulars are clarified by issue of further circulars in the form of questions and answers. One of the numbers is Circular No. 451, dated February 17, 1986, A doubt was raised where the assessments in some years are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comes forward and discloses its true, full and enhanced income then in that case the assessee will be entitled for the benefit of the scheme, for the enhanced part of income. In the case in hand, the assessee before revising the return in the original return, has disclosed the -income to the tune of Rs. 11,69,100. Can that be said that the income disclosed in the original return has escaped or that is the enhanced or higher income for the purpose of the Amnesty scheme, our answer will be in the negative, i.e., the income which is disclosed in the regular return neither that can be said as concealed income nor undisclosed income nor a higher income-that is an income which the Department expects the assessee to disclose in a routine under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 147 are attracted for revised return and the definition of "escaped income" should be considered for the purpose of assessing income of the assessee under the Amnesty scheme. Learned counsel for the assessee drew our attention to the definition of "income escaped" given under the provisions of section 147 of the Act. Specially, he drew our attention to clause (b) of Explanation 2 to section 147 which provides that where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return. This Explanation 2 starts with the wording "for the purpose o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the benefit of the scheme for the income which is disclosed by the assessee in the original return. Therefore, whatever benefits are extended to the Amnesty scheme that can at best, be extended only to the income which has not been disclosed by the assessee. In this case even if we accept that definition of "escaped income" in the Explanation can be applied for the purpose of the Amnesty scheme, the tax effect is negligible as escaped income is Rs. 8,488. We will consider this issue in an appropriate case. Learned counsel for the assessee further submits that any return, even the regular return filed after the Amnesty scheme, that is, with effect from November 15, 1985, and the income shown thereunder is entitled for the benefit of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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