SUBASH CHAND JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner has prayed for issuance of a Writ of Certiorari, to quash the order passed by the 1st respondent in C.No.9651(140/2007-2008/SLM dated 08.07.2009.

(2.) The brief facts leading to the present case as stated in the affidavit filed in support of the writ petition is that the petitioner is a partner in a partnership firm by name, Bakliwal Trading Company carrying on business of 'Sago Trading'. The petitioner also claims that he has income from other income sources like property interest etc., and he is regular in filing his income tax returns. The petitioner claims that during the financial year 1993-1994 relevant to the assessment year 1994-1995, the petitioner and his two minor children had received Rs.2,00,000/- each as a gift from overseas, which the petitioner brought it to the respective accounts and added to the capital account as early as 31.03.1994. He has also filed his return of income to that effect.

(3.) The petitioner states that in the mean while, the Union Budget was presented on 28.02.1997 had introduced the Voluntary Disclosure of Income Scheme,1997, [in short, hereinafter referred to 'VDIS'] which the petitioner is entitle to avail. However, the petitioner submits that he was forced to file return of income as a revised return of income on 08.05.1997 by including the said gift of Rs.6,00,000/- as his own income. After the VDIS was notified, the petitioner declared Rs.6,00,000/- as gift under VDIS and the Commissioner of Income Tax, Coimbatore issued certificates under Section 68(2) of VDIS to the petitioner as well as to his two minor children. While that being the case, when the earlier returns filed under Section 143(1) of Income Tax Act for the assessment year 1994-1995 was pending before the second respondent, the said certificates under Section 68(2) of VIDS came to be issued and hence, the Commissioner of Income Tax, Coimbatore has issued a show cause notice seeking to revise the order of assessment on the ground that the foreign gift had already been offered for taxation in return of income filed by the petitioner on 08.05.1997 and in the said return, such availing of VDIS was not proper and the petitioner is not entitle to get the benefits under the Scheme, to which the petitioner had filed an objection.