TMI Blog1996 (7) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... lso getting interest on deposits made in various firms. He was not maintaining regular books of account. Statement of affairs, cash flow statement, bank pass book and ledger extracts for the relevant period were called for and these were examined by the ITO. It was noticed that a sum of Rs. 1,00,000 was deposited on 27th Dec., 1991, with Vysya Bank and another sum of Rs. 3,08,000 deposited on 1st Jan., 1992. The above two deposits were later on withdrawn and deposited in National Housing Bank under the Voluntary Deposits (Immunities Exemptions) Scheme, 1991, hereinafter referred to as `VD (I E) Scheme on 29th Jan., 1992, and 30th Jan., 1992, respectively. Therefore, it was claimed as the VD (I E) scheme, 1991, applied and could not be subjected to tax again. This contention was not accepted by the AO on the ground that the assessee has availed of the immunity provisions under the above scheme in respect of Rs. 60,000 deposited in Vysya Bank on 10th Feb., 1992, and Rs. 1,84,000 deposited in the same bank, again on 10th Feb., 1992, for which the assessee had furnished copies of certificates of withdrawal under NHB (Voluntary Deposits) Scheme, 1991, along with application for withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid was around Rs. 1,25,000. As the above-mentioned amounts have not been declared by the assessee the income chargeable to tax had escaped assessment for the asst. yr. 1992-93. He accordingly issued notice under s. 148. Relying on the above, the learned Departmental Representative contended that there are unexplained credits and, therefore, the reopening of the assessment is just and proper and the reopening is thus valid. 6. We have considered the rival submissions. The assessee, in this case, has shown in his return, the remittance in the foreign exchange under the Foreign Exchange (Immunity) Scheme, 1991, Rs. 1,00,000 and Rs. 3,08,000. According to the learned counsel for the assessee the remittance under the Foreign Exchange Remittance Scheme is genuine. In this case, Viswanath, the father of the assessee and also his natural guardian, deposed before the Asstt. Director of Inspection on 16th June, 1993, that remittance of Rs. 1,00,000 and Rs. 3,08,000 were arranged by I.S. Prasad to whom the cash was handedover in advance. After about 10 days I.S. Prasad told him that the said remittance had not originated from a genuine NRI account and also did not give him the remittance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uranga Group Silk Merchants. He has stated that on 23rd Dec., 1991, he took Rs. 10 lakhs from Pathi Group. But (sic-it) is nobody's case that this sum of Rs. 10 lakhs was for the assessee. He has further stated that he has given Rs. 50 lakhs approximately to one K.V. Kishore. During this time I.S. Prasad informed him that said DD's and certificates where not received from NRE accounts but all the transactions were made by Samad Krishnappa and Radhakrishna Murthy, the bank manager. It is argued on behalf of the assessee that the statement of I.S. Prasad cannot be relied on for the reason that the assessee was not allowed to cross- examine him in spite of repeated requests. Assessee's father sent a letter to the Asstt. Director of Inspection on 11th Nov., 1993, requesting to furnish a copy of all the statements given by I.S. Prasad. On behalf of the assessee a copy of the letter addressed by I.S. Prasad to the Asstt. Director of Inspection requesting for adjournment of the case to 18th on the ground that he was unable to appear before the Asstt. Director of Inspection on 8th and 9th as his father aged 74 years had undergone surgery at a hospital and required care as he was a diabetic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to make a deposit with the National Housing Bank on or before close of business on 30th Nov., 1991. Thereupon, 40 per cent of such deposit would be deducted and set apart as a special levy, which would form the corpus of a fund in the National Housing Bank. This fund will be utilised for financing slum clearance and low cost housing for the poor, in accordance with the guidelines and priorities laid down by the Government. The depositor would be allowed to draw the balance amount in one or more instalments through account payee cheques for any stated purpose of his choice." The Finance Minister has further stated in his speech that the IT Act may contain a provisions under which the taxpayers could avail of the facility of waiver of penalty and interest on the amount disclosed once in a lifetime. He has also stated that to those who have already availed of this facility, he proposes to give just one more opportunity to disclose their unaccounted incomes. The Finance Bill also contained a proposal for making suitable amendments to s. 273A of the IT Act for the above purpose. 10. The settlement commission was set up to provide an opportunity to assessee to declare their undi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c (drawn from PSI deposited to Bank) 3,08,000 29-01-92 By Pathi Saree Emporium (amount withdrawn from firm) 3,08,000 . National Housing Bank (Amt. paid to NHB) 3,08,000 . By Vysya Bank a/c (amt. drawn from Vysya Bank) 3,08,000 13-02-92 Saree Empori (Amt. recd. from NHB advanced)um 1,84,800 10-02-92 By Vysya Bank a/c (Bal. of 60% received from NRE) 1,84,800 13-10-91 Pathi Resham (Amount transfer to Pathi Process) 14,000 15-10-91 By Pathi Process Capital Pathi Resham received 14,000 07-12-91 Vaishnavi Prints 30,000 09-12-92 By Pathi Prints Cheque from Vishanavi Prints 30,000 30-04-91 Pathi Silk House (gift Amt. advance) 20,000 30-04-91 By Gift from Ananthram 20,000 01-06-91 Trim Exports Ltd (shares) 2,000 01-06-91 By Vishnavi Prints 2,000 24-04-91 Professional-tax paid 250 24-04-91 By Vishnavi Prints 250 05-08-91 LIC Premium from Pathi 1,871 05-08-91 By Pathi Prints (towards LIP) 1,871 . Cash ..... X X X X Extracts X X X X X X X X Extracts X X X X
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