K V PRODUCE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) PETITIONERS seek to quash Ext. P4 order of first respondent-Commissioner of Income Tax, rejecting their request for amnesty. Directions to respondents to accept a return filed by petitioners dated 21-3-1987, and to withdraw C. C. 62/87 on the file of the Additional Chief Judicial Magistrate, ernakulam, are also sought.

(2.) PETITIONERS returned an income for Rs. 2,64,090/- for assessment year 1983-84. An assessment, Ext. R2 dated 7-1-1986 was made, rejecting the return filed and adding a suppressed income of Rs. 1,47,888/ -. PETITIONERS appealed against that order unsuccessfully. The appeal was rejected on 5-9-1986 by Ext. R2 (a ). Thereafter, a second appeal was filed before the income Tax appellate Tribunal.

(3.) ACCORDING to respondents, the Scheme will not apply to the case of petitioners, as there was no disclosure of income by them. The income assessed under Ext. R2 was shown' by petitioners, as the income disclosed under the scheme. This is nothing but an attempt to get the benefit of amnesty, without qualifying for it, submit respondents. The so called disclosure was made, fourteen months after Ext. R2 assessment on 7-1-1986, and after the first appeal was rejected. Referring to Ground (E) of the writ petition respondents submit that even the time for disclosure was over on 31-3-1986, almost a year before the so called disclosure was made. They submit that a Circular, derogatory to the statute or supplanting it, cannot be issued as that will be ultravires.