COMMISSIONER OF INCOME TAX Vs. CHANDER PRAKASH GUPTA

JUDGEMENT

(1.) THIS appeal was admitted on the following substantial question of law: 1. Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that since the order passed by the AO on 16th Oct., 1998 under Section 143(3) was in accordance with the order of the CIT passed under Section 68(2) of VDIS -97, the same cannot be considered as erroneous or prejudicial to the interest of the Revenue as the AO while framing reassessment on 16th Oct., 1998 could not have ignored the impact of the acceptance of declaration and the certificate issued by the CIT himself

(2.) THIS case relates to the asst. yr. 1993 -94. Search and seizure operations under Section 132 of the IT Act, 1961 (hereinafter referred to as the Act) were conducted at the residential and business premises of the assessee Sh. Chander Parkash Gupta on 19th May, 1994. During the search operation a rough trial balance dt. 28th Feb., 1993 was seized from the said residential premises. The trial balance showed sales of different vends in Shimla District run by M/s Tirath Ram and Co., Shimla and credit balance of Rs. 14,07,143 was reflected in the name of Sh. Chand Gupta.

(3.) IT appears that thereafter Sh. Chander Parkash Gupta as Karta of Chander Parkash Gupta (HUF) disclosed the amount of Rs. 14,07,143 as the income of the Chander Parkash Gupta, (HUF) under the Voluntary Disclosure of Income Scheme, 1997 (VDIS). He also obtained a certificate under Section 68(2) of the said scheme to show that he had paid tax on this amount. The AO vide order dt. 16th Oct., 1998 came to the conclusion that in view of the fact that certificate under Section 68(2) of the VDIS had been issued no addition was called for.