ASWATH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appellant was the petitioner in W. P. No. 9112 of 1998 which was dismissed by the learned single judge by order dated June 14, 1999.

(2.) THE appellant filed a declaration under Section 64(1) of the Finance Act, 1997 ("the Act" for short), under the Voluntary Disclosure of Income Scheme, 1997 ("the VDI Scheme of 1997" for short). By the said declaration, the appellant disclosed the income of Rs. 32,000 for the assessment year 1996-97, Rs. 4,32,000 for the assessment year 1997-98 and offered to pay income-tax thereon in terms of the said scheme. THE said declaration was filed on December 29, 1997. THE asset in regard to which the income was declared was a vacant site for the assessment year 1996-97, fixed deposit made on November 3, 1996, in regard to assessment year 1997-98 and eight gold biscuits for the assessment year 1997-98. THE respondent refused to accept the said declaration as per the communication dated December 30, 1997, on the ground that action under Section 132 of the Income-tax Act, 1961, had been initiated in the case of the petitioner and therefore he is not eligible to file a declaration having regard to the provisions of Section 64(2)(ii) of the Act. THE petitioner is aggrieved.

(3.) IN so far as the second contention is concerned, the appellant contended that there was no search in regard to his income under Section 132 of the INcome-tax Act prior to the declaration and, therefore Section 64(2)(ii) of the Act did not come in the way of his declaration being accepted.