K V PRODUCE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioners seek to quash exhibit P-4 order of first respondent-Commissioner of Income-tax, rejecting their request for amnesty. Directions to the respondents to accept a return, filed by the petitioners, dated March 21, 1987, and to withdraw C. C. No. 62 of 1987, on the file of the Additional Chief Judicial Magistrate, Ernakulam, are also sought.

(2.) THE petitioners returned an income of Rs. 2,64,090 for the assessment year 1983-84. An assessment, exhibit R-2, dated January 7, 1986, was made, rejecting the return filed and adding a suppressed income of Rs. 1,47,888. THE petitioners appealed against that order unsuccessfully. THE appeal was rejected on September 5, 1986, by exhibit R-2(a). THEreafter, a second appeal was filed before the Income-tax Appellate Tribunal.

(3.) ACCORDING to the respondents, the scheme will not apply to the case of the petitioners as there was no disclosure of income by them. The income assessed under exhibit R-2 was shown by the 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 exhibit R-2 assessment on January 7, 1986, and after the first appeal was rejected. Referring to ground (E) of the writ petition, the respondents submit that even the time for disclosure was over on March 31, 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 ultra vires.