COMMISSIONER OF INCOME TAX Vs. PREM PAL

JUDGEMENT

(1.) THIS order will dispose of IT Appeal Nos. 129, 155, 600, 640, 743, 766 of 2008, 91, 83, 261 and 379 of 2009 as all the cases involve common question raised on behalf of the Revenue to the following effect:

(2.) IN IT Appeal No. 155 of 2008, the Assessee is individual and filed declaration on 31st Dec, 1997 before the CIT under the Voluntary Disclosure of Income Scheme, 1997 (VDIS) declaring that he had assets in the form of gold and diamond jewellery acquired much earlier. However, tax having not been paid as per the declaration by virtue of Section 67(1) of the scheme, the declaration was treated to have never been made. Since from the declaration, the Assessee was found to be owner of the unexplained investment in jewellery, the AO invoked Section 69A raising statutory rebuttable presumption in favor of unexplained investment to be in the year in which it is found and issued notice for reassessment under Section 148 and proceeded to make assessment thereby making addition equal to the value of unexplained assets. On appeal, the CIT(A) upheld the addition but the Tribunal set aside the initiation of reassessment proceedings holding that since as per declaration undisclosed income was of the financial years 1985 -86 and 1986 -87 and the AO had no other material, the said declaration could not be the basis for reassessment for the asst. yr. 1998 -99. The finding recorded by the Tribunal is as under:

(3.) WE have heard learned Counsel for the parties and perused the record.