COMMISSIONER OF INCOME TAX Vs. R.SELVARAJ

JUDGEMENT

(1.) THIS Tax Case Appeal, filed at the instance of the Revenue against the order of the Income Tax Appellate Tribunal, relating to the assessment year 1998 -99, was admitted on the following substantial question of law:

(2.) THE assessee herein filed a declaration under the Voluntary Disclosure of Income Scheme, 1997 (VDIS) before the Commissioner of Income Tax, Tamil Nadu - IV on 30.12.1997, declaring income in the form of value of assets at Rs.79,55,710/ -. Admittedly, the assessee did not discharge his obligation of paying the required tax under the Scheme.

(3.) AGGRIEVED by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals). On going through the details filed and the declaration made, the Commissioner of Income Tax (Appeals) found that the assessee was also in possession of gold jewellery as well as other properties, but the assessee had not disclosed the facts about the possession of those assets anywhere prior to 31.12.1997. The Commissioner of Income Tax (Appeals) pointed out that the letter written by the assessee to the Income Tax Officer on 27.02.2002 revealed that it was only as regards the cash that the assessee had denied possession and not the other assets. The Commissioner further pointed out that having given a declaration as regards the assets offered under the VDIS Scheme, the assessee could not retract his own statement, unless there were evidences available with him to show that the declaration made was inconclusive or incorrect. In other words, it was always open to the assessee who made the admission, to contend that his admission was incorrect. In the circumstances, the Commissioner held that the statement made under the VDIS scheme was made for the purpose of reopening the assessment. Thus, going by the materials available, the Commissioner of Income Tax (Appeals) dismissed the appeal.