KAMAL SOOD Vs. UNION OF INDIA

JUDGEMENT

(1.) This order will dispose of two Writ Petns. Nos. 1887 and 2195 of 1999, in which common questions of law and fact arise. Since the arguments were addressed in Civil Writ Petn. No. 1887 of 1999, the facts are taken from this case.

(2.) The challenge in this petition filed under Art. 226 of the Constitution is to the order dt. 21st July, 1998, passed by the CIT, Rohtak, under s. 67(2) of the Finance Act, 1997, whereby the declaration filed by the petitioner under the Voluntary Disclosure of Income Scheme 1997, was rejected.

(3.) The petitioner is doing business in timber and is a partner in the firm called Public Timber Traders, Mathura Road, Faridabad. He is assessed to Income Tax in Ward No. 1 at Faridabad in the State of Haryana. The Government of India by the Finance Act, 1997, introduced a scheme called the "Voluntary Disclosure of Income Scheme, 1997" (for short "the scheme"). It is contained in Chapter-IV of the Finance Act consisting of ss. 62 to 78 (both inclusive). The purpose of introducing the scheme is to mobilise and channelise funds into priority sectors of the economy and to offer an opportunity to persons who have evaded tax in the past, to declare their undisclosed income, pay a reasonable tax and in future adopt the path of rectitude and civic responsibility. In other words, this was an amnesty scheme in line with similar schemes declared by the Government previously. The sole object of the scheme is to unearth the maximum black money and put the same to productive use. Under the scheme a person could voluntarily disclose his income for which he had failed to furnish a return under s. 139 of the IT Act, 1961, or which he had filed to disclose in a return of income furnished by him or which had escaped assessment by reason of his omission or failure to make a return or to disclose fully and truly all material facts necessary for his assessment or otherwise. Such voluntarily disclosed income was taxed at the rate of 30 per cent. The declaration was to be made to the CIT in the prescribed form. The tax payable under the scheme in respect of the voluntarily disclosed income was to be paid by the declarant and the declaration was to be accompanied by proof of payment of such tax. Sec. 67 of the Finance Act, which is relevant for our purpose is reproduced hereunder for facility of reference :