TMI Blog1989 (12) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Act, 1961 ?" The assessment years involved are 1971-72 and 1972-73 for which the relevant years of account were years ending October 28, 1970, and October 17,1971. The facts as narrated by the Tribunal in the statement of case are as under. The respondent-assessee is Sumati Kumar Sunil Kumar, a partnership firm, the concerned assessment years being 1971-72 and 1972-73. The material facts which are common to both the years are that there was search and seizure in the case of the assessee on June 12, 1973. The original assessment for 1971-72 was made on March 19, 1974, on a total income of Rs. 25,913 and the original assessment for 1972-73 was made on February 25, 1975, on a total income of Rs. 28,000. The documents seized during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year 1972-73. He did not allow set off of the speculation loss in determining the assessee's income from business. The Appellate Assistant Commissioner, on appeal, rejected the assessee's contention that, under the Voluntary Disclosure of Income and Wealth Ordinance, 1975, the Income-tax Officer was bound to accept the net amount of concealed income as declared by the assessee and that he was not justified in making any adjustment thereto. The Appellate Assistant Commissioner was of the view that speculation losses had to be considered separately under the Act and had to be excluded for the correct computation of income of the assessee. In the second appeal that followed, the Tribunal accepted the assessee's stand in this behalf. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax on voluntarily disclosed income made within the period mentioned in the Ordinance "in respect of party income chargeable to tax under the Indian Income-tax Act, 1922, or the Income-tax Act for any assessment year". It enables the assessee to disclose income which was otherwise chargeable to tax under the Act, but was not brought to tax because the income was not disclosed at the time of the assessment. Three types of concealment of income have been mentioned in the charging section 3 which are as under : (a) income for which the assessee has failed to furnish return under section 139 ; or (b) income which the assessee has failed to disclose in the return of income furnished by him under the Act, before the date of commencement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee for the said assessment year or years. Section 14 of the Act makes special provisions for disclosure of income in cases of search and seizure made under section 132 of the Income-tax Act, or section 37A of the Wealth-tax Act. Under section 14, where any books of account, other documents, money, bullion, jewellery or other valuable articles or things belonging to any person have been seized, then that person may make a declaration in respect of any income relating to the previous year in which such search was made or any earlier previous year. Sub-section (2) of section 14 lays down that the declaration has to be made to the Commissioner and "shall be in such form and shall be verified in such manner as may be prescribed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the income of the declarant under the provisions of any of the Acts mentioned in sub-section (1) of section 8 or the Wealth-tax Act". Therefore, what has been declared must be taken into account in making assessment or reassessment of income under the Income-tax Act. While taking into account the business income of Rs. 7,08,146 disclosed by the assessee, the Income-tax Officer finds that a deduction has been sought to be made of speculative loss from such business income. The Income-tax Officer will have to take into account not only the entire amount of the income disclosed but also the loss sought to be deducted. If such deduction is not permissible in law, the Income-tax Officer has no option but to delete such deduction. I am of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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