KHANDELWAL OIL INDUSTRIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under S. 256(2) of the IT Act, 1961 (hereinafter referred to as 'the Act').

(2.) THE material facts giving rise to this application, briefly, are as follows : The petitioner is a firm registered under the Partnership Act and under the IT Act for the relevant asst. yr. 1974-75, for which the accounting year ended on Diwali, 1973. In respect of the assessment year in question the petitioner filed its return on 30th, June, 1974 disclosing a total income of Rs. 55,702. While proceedings for assessment were pending before the ITO, on 31st Dec.,1975 the petitioner made a disclosure of income of Rs. 31,600 in respect of asst. yr. 1972-73 to 1975-76 under the Voluntary Disclosure of Income and Wealth Ordinance, 1975. The ITO by his order of assessment dt. 23rd Sept.,1977, made an addition of Rs. 33,566 to the disclosed income of the petitioner. On appeal, it was contended by the assessee that the petitioner should have been given credit for the disclosed income of Rs. 31, 600 against the addition of Rs. 33, 566 made by the ITO. The CIT (A) by his order dt. 19th, Dec.,1978, allowed the appeal and remanded the matter of the ITO with a direction to examine whether the appellant was entitled to immunity under the Voluntary Disclosure of Income & Wealth Ordinance, 1975. After the remand, the ITO held that since the disclosure of income was in respect of asst. yrs. 1972-73 to 1975-76, the petitioner was entitled to immunity in the asst. yr. 1974-75, to the extent of one-fourth of the amount of Rs. 31,600. Aggrieved by that order, the petitioner filed an appeal before the AAC, which was rejected. The second appeal preferred by the assessee before the Tribunal was also dismissed. As the application under S. 256(1) of the Act filed by the assessee for making a reference to this Court was rejected, the assessee has filed this application.

(3.) WE accordingly direct the Tribunal to state the case and to refer the aforesaid questions of law to this Court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.