SHASHILA DEVI MOHATA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The writ petitioner did not submit any Income Tax Return under the Income Tax Act, 1969 or Wealth Tax Return under the Wealth Tax Act, 1957 upto assessment year 1975-1976. On or about Oct. 8, 1975 the Voluntary Disclosure of Income and Wealth Ordinance, 1975 was promulgated providing for Voluntary Disclosure of Income and Wealth and introducing a Voluntary Disclosure Scheme. Subsequently the said Ordinance was replaced by the Voluntary Disclosure Income and Wealth Act, 1976 (hereinafter referred to as the Voluntary Disclosure Act). In accordance with the said Voluntary Disclosure Scheme the petitioner filed a declaration in Form 'A' under Section 3 (1) of the Ordinance on December 30,1975 disclosing her income by way of interests, dividends, capital gains etc. amounting to Rs. 4,54,640/- for the assessment years 1965-66 to 1975-76. In her declaration in the prescribed form the petitioner disclosed that during the said assessment years from 1965-66 to 1975-76. Income tax amounting to Rs. 65,989.32 in total was deducted at source by the companies at the time paying dividends. The petitioner claimed adjustment of the said amount of income tax which was deducted at source against the income tax payable under the Voluntary Disclosure Scheme. The petitioner also requested the Government Authority to allow her to pay the balance amount of income tax in instalments. The time to make payment of tax and or investment in relevant bond was extended from time to time upto Jan. 1,1978. The petitioner paid the income tax and wealth tax payable under the Voluntary Disclosure Scheme on different dates excepting the said amount of Rs. 65,989.32 which was deducted at source from her income. By memo dated March 15,1978, the concerned Income Tax Officer informed the petitioner that assessee was not entitled to claim adjustment of the amount deducted at source as the Voluntary Disclosure Act, 1976 did not include any such provision for adjustment. In view of the said decision the Income Tax Authorities did not accept the petitioner's declarations under the Voluntary Disclosure Scheme and initiated assessment proceedings for different assessment years against the writ petitioner and notices under Section 148 of the Income Tax Act were issued. The writ petitioner thereafter submitted an application before the Central Board of Direct Taxes (hereinafter referred to as the Board) for accepting her declaration under the Voluntary Disclosure Scheme and to grant a certificate of payment of entire tax liability on the disclosed income. By letter dated May 9,1980 the petitioner was informed that the Central Board of Direct Taxes has rejected the petitioner's request for the following reason :

(2.) The petitioner again moved the Central Board of Direct Taxes for reconsideration of its decision. The petitioner was informed by letter dated Dec. 1, 1980 that the Central Board of Direct Taxes had nothing more to say than what was stated in the letter dated May 9,1980. After such rejection assessment orders were passed in the different proceedings initiated against the petitioner as her declaration under the Voluntary Disclosure Scheme was not accepted on the ground of non-payment of the full amount payable under the Voluntary Disclosure Scheme. Being agrieved against such refusal to accept the petitioner's declaration under the Voluntary Disclosure Scheme, initiation of Income Tax proceedings and the assessment orders passed in those proceedings the petitioner has filed this writ application.

(3.) The main question required to be determined in this proceeding is whether the petitioner was entitled to get credit of the amount of Income Tax deducted at source, for the purpose of payment of Income tax under the Voluntary Disclosure Act or not.