TMI Blog1981 (7) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... cover certain cash credits appearing in the books of account of the petitioners. The said amount of Rs. 40,000 was included in the said return after the notice under s. 148 of the I.T. Act was given. It is the contention of the petitioners that the said amount of Rs. 40,000 was included in the return with a view to enter into a settlement with the department by surrendering the said amount of Rs. 40,000 for assessment, praying for non-levy of penalty in respect of the same. 'The negotiations between the petitioners and the ITO were going on. Meanwhile the Voluntary Disclosure Scheme, 1975, was introduced under an Ordinance known as the Voluntary Disclosure of Income and Wealth Ordinance, 1975 (XV of 1975). The said Ordinance of 1975 was repealed and replaced by the Voluntary Disclosure of Income and Wealth Act, 1976 (Act No. VIII of 1976) (hereinafter referred to as " the said Act "). During the course of settlement between the petitioners and the ITO, it is contended by the petitioners that the ITO suggested to take the benefit of the said Voluntary Disclosure Scheme, 1975, and, accordingly, the petitioners accepted the said suggestion, and initially they filed a declaration unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' The ITO in the course of assessment for the assessment years 1967-68, 1968-69 and 1969-70, and other years was investigating in respect of certain cash credits and sales appearing in the-books of account of the petitioners. The petitioners explained to the ITO that these cash credits and sales were in respect of the income which was disclosed in the disclosure made by the petitioners and as per the provisions of the said Act the same could not be taken into account for the purpose of assessment, the same being assessed under the provisions of the said Act. The ITO, however, was of the opinion that the disclosure made by the petitioners was not made in accordance with law and, therefore, he was entitled to ignore the said disclosure made by the petitioners. In spite of the submission made by the petitioners that the said disclosure could not be taken into account for the purpose of assessment for the said assessment years, the ITO proceeded to assess the petitioners' income, ignoring the certificate issued by the Commissioner. Ignoring the contention of the petitioners, the ITO completed the assessment for the relevant assessment years, ignoring the said certificate, and passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no provision in the said Act to withdraw the certificate once granted or issued in favour of the petitioners by the competent authority. Secondly, it is submitted that there was no right of review or to rectify any mistake contained in any of the provisions of the said Act. Thirdly, it is argued that the disclosure made by the petitioners, which was disclosed under the said Act, fell under s. 3(1)(b) and 3(1)(c) of the said Act. Before we proceed to consider the submissions made by Mr. Patil, it is necessary to set out the material provisions of the said Act. Sub-section (1) of s. 3 of the said Act lays down as under : " 3. Charge of income-tax on voluntarily disclosed income.-(1) Subject to the provisions of this Act, where any person makes, on or after the date of commencement of this Act but before the 1st day of January, 1976, declaration in accordance with the provisions of section 4 in respect of any income chargeable to tax under the Indian Income-tax Act, 1922 (XI of 1922), or the Income-tax Act for any assessment year (a) for which he has failed to furnish a return under section 139 of the Income-tax Act, or (b) which he has failed to disclose in a r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Officer; (ii) the income-tax in respect of the voluntarily disclosed income is paid by the declarant; and (iii) the amount required to be invested in the securities referred to in sub-section (3) of section 3 is so invested by the declarant. (2) The Commissioner shall on an application made by the declarant, grant a certificate to him setting forth the particulars of the voluntarily disclosed income, the amount of income-tax paid in respect of the same, the amount of investment made in the securities referred to in sub-section (3) of section 3 and the date of payment and investment." Section 10 of the said Act provides as under: " 10. Income-tax in respect of voluntarily disclosed income not refundable .-Any amount of income-tax paid in pursuance of a declaration made under sub-section (1) of section 3 shall not be refundable under any circumstances." Having regard to the provisions of the i said Act, it appears that the petitioners have made such a declaration under s. 3 of the said Act and also paid a tax of Rs. 15,850 on October 12, 1975, and also invested an amount of Rs. 2,450 on December 11, 1975, as provided in the said Act which the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s well settled that the right of review is a statutory right, and, in the absence of any provision to that effect in the said Act, it was not open to the Commissioner to reconsider the same material, placed before him at the time of issuing such certificate under s. 8(2) of the said Act. It is also not open to the Commissioner to reconsider his own opinion once a valid certificate under s. 8(2) of the said Act has been issued. more change of opinion would not give a right to the Commissioner to withdraw such a certificate once issued. The legal consequences of issuing such a certificate are very well stated in the said Act itself. The petitioners were assessed on a disclosure of income under the said Act. They also paid a tax of Rs. 15,850 and also deposited in securities an amount of Rs. 2,450 on December 11, 1975. Having complied with the conditions, a certificate came to be issued in favour of the petitioners. Section 10 of the said Act specifically lays down that any amount of incometax paid in pursuance of a declaration made under sub-s. (1) of s. 3 shall not be refundable under any circumstances. The provisions of the said s. 10 give an indication of the finality attached to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding whether the application of the rule of construction laid down by the said s. 21 would be justified in the circumstances of the case. We have already set out above the provisions setting out the scheme under the said Act. Suffice it to say that the scheme under the said Act does not vest such implied power in the Commissioner of Income-tax. If Mr. Pradhan's argument that under s. 21 of the General Clauses Act the Commissioner shall have the power to withdraw the certificate issued by him is accepted, and the Commissioner withdraws the same, even then the petitioners will not be entitled to the refund of Rs. 15,850 paid by them on October 10, 1975, under any circumstances. The issuance of the certificate is not an administrative order but a quasi-judicial order passed by the Commissioner in exercise of the powers vested in him under an enactment. Unless the statute gives such a right to review or rectify the mistake, it is not open to the authority to bypass the provisions of the said Act and the Scheme and nullify an order which has been passed earlier while exercising the powers under the statute. The circumstances that may follow by the application of s. 21 of the General Cla ..... 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