Jamnaprasad Kanhaiyalal v. Commissioner Of Income-Tax, M.p., Bhopal

JAMNAPRASAD KANHAIYALAL COMMISSIONER OF INCOME-TAX, M.P., BHOPAL May 8, 1981 ( R.S. PATHAK, A.P. SEN AND E.S. VENKATARAMIAH, JJ.] Voluntary Disclosure Scheme under section 24 of the Finance (No. 2) Act, 1965, Scope and effect of-Whether the acceptance of a disclosure statement made by a declarant under section 24 of the Finance Act, 1965 confers immunity on ano-ther person from tax liability in respect of the same sum of money-Whether section 24 has an overriding effect over section 68 of the Income Tax Act, 1961-Bar of double taxation-Section 18 of the Voluntary Disclosures of Income and Wealth Act, 1976 (Act 8of1976). During the course of the assessment proceedings of the assessee-firm for the assessment year 1967-68, the Income Tax Officer"noticed cash credits of Rs. 9,250 each in the names of five sons of the Managing Partner, in the books of the assessee. The Income Tax Officer found that these creditors, who were minors, had no independent source of income. The assessee contended before the ITO that the five creditors had voluntarily disclosed the credits under section 24 of the Finance (No. 2) Act, 1965 and that the disclosures were accepted by the Commissioner. The ITO rejected the contention of the assessee and held that the cash credits in question were unexplained cash credits, that they represented the income of the assessee from undisclosed source, and accordingly made an addition of Rs. 46,250. The Appellate Assistant Commissioner held that the acceptance of the voluntary disclosures under section 24(3) of the Act and the payment of tax thereon precluded the Department from disputing the fact that the income belonged to the creditors, and, as the same income could not be taxed twice once in rhe hands of the creditors and again in the hands of the assesseee, set aside the order of the ITO. The Tribunal disagreed with the Appellate Assistant Commissioner and upheld the order of the ITO. Hence the reference at the instance of the assessee under section 257 of the Income Tax Act, 1961. Answering the reference against the itssessee, the Court HELD : Per Sen, J. l. Section 24 of the Finance (No. 2) Act, 1965 cannot be construed as conferring any benefit, concession or immnnity on any ,person other than the per-son making the qeclaration under the provisions of the· Act. The scheme of the Act makes it abundantly clear that it was to protect only those who preferred to disclose the income they themselves bad earned in the past and which they ·had failed to disclose at the proper time. The scheme only permitted the bringing forward or income to tax; it did not require investigation of the claim of the declarant. The Act granted immunity only to the declarant and not to other persons to whom the income really belonged. [859 G-H, 860 A] 2. The legal fiction created by sub-s. (3) or s. 24 of the Finance (No. 2) Act, 1965 by virtue of which the amount declared by the declarant had to be charged to income-tax "as if such amount were the totalincome of the declarant", was limited in scope and it cannot be invoked in assessment proceedings rela-ting to any person other than the person making the declaration, and did not take away the power vested in the ITO under section 68 of the Income Tax Act, 1961 to reject the explanation of an assessee for a cash credit on the ground that the explanation was not satisfactory in the case of such other person. (861 F-G] 3. The finality under sub-s. (8) of section 24 or the Act was to the order of the Central Board of Revenue under sub-s. (6) thereof and not to the assess-ment of tax made on the basis of a declaration made by the creditors under the scheme. There was, therefore, nothing to prevent an investigation into the true nature and source of the cash credits. (861 B, DJ ਮਈ 8, 1981 MAATATS BHATIA (AATae)ata MABT MA, AA MAT, ALATA(M/s. Jamnaprasad Kanhaiyalal ‘The Commissioner of Income-Tax, MadhyaPradesh, Bhopal) (8 8, 1981) _fcararfaafa ato Uo TSE, Go do Ba ate Fo Go THETA) fat (Fert 2) afafaan, 1965 (1965 st 15)—aret 24 (1), (3) atte (8) [aafer araez afafaan, 1961— at aver 68]—eitaor—aegar Taw vt THA —ATAHT Fseqfea—faatfedt we sree wae areitaret & ae aa eTfraa fear atat—acakan anita era ear THAT STaaa att 24(1) & aceta qeare-erara oat ater Bt feasar alte ener 24(3) & area arms & BE MeT HVA HTarat feat ATTA 24(3) & att atest & segaat aeormatat a at arat 2, a7 fe sa oe at a.ehanrnatal & ara ateaa F eax qat seat J—Tat featsFB afe qar at as cael F aerarasa eaedtace tel faaat,aera oraez ga fafa aferartt weet arane at afafrad, ateafan 1961 safe a atcaz ata 68 et Faay Hea a caries Ee g|| faaifedt ue aardt Gt 81 ea sa H at aneare & frat exaq fretfedt @ ate cat dle ames ate CF Aaahga) areret Gt F ary ¥ za adt ar fgcar1 1966 aAart BY aaa at Ta gara Farad & avag faaier ay1967-68 & etare faatcer st wrdardt F ara araHz aferarey HH fraifeat at Ner-agh ¥ gat cig gat F ay 9,250 ere at aiewae THl-aTaTwr HF feetsaz are aast seed ageTHT aHat TAT THAT wr athe eT TA ate sara ata aadfaya sgtae dae H fraifedt & a ostwatear sarae&, AT-fartat efaaaart F arrest 83 A gaare ax feat) gamaiegaa ag eaters Prat fis carmafal ar aa aT aT eeat wat 81 araat afeera & saat gaza ety BTN THE:ae ora at freifedt at oe Ta AT ae at Arar at afin:Pratfeat ga sitfaer site ete at eqez Tel BT aa, safaa st 7wae fer av’ mat & ge faeatfedd at ara spar WAT | aTETafeard: * ag dt afefaetfer Pear fas cate & ate fag ory aremaatatr ot dtwormat st gt, wz 8 Ge et oat &, frat aeqcafeat wat 1 acter fire sd az TAIT AAGT (atte) MARTafrare % fret & aeaa wet gar att saat ag afatreatfer fearfe wa afafian atare 24% ata frat safer + fret wag atsae Ht fears, at Aeomal wt Se Toma ait de, azFrater wt afer a arate 1 gab qfeeator & frettedBar& ageg.TelBT Rt ATHaTE Hr fear star aria, aaifn WE aa eqsz @ fs sae fam efeara H oer G3 a ate saa SUC HiT TATwate arret afefirt, 1961 % seta frday & wafer aa Fwere TAS A wt war sfafes ate ade @1 gafae zaPifas arrez afearet are afta eT Bram wel Tat Gt THAT |_ safee agtas saa aga (at) ¥ 46,250 eae at vay ayfaaret 2% ar fazer far | Used frat * sak faeg atte afaazor|Same acter st adhe afreey WeIae ATS orga (aka) 3Prota & agaa ad gar atx wat oraz afeard & fafaraa ayPITH WaT eae are fraffedt J arraz afafian, 1961 atWIT 256 F wet at ae X geqea ala are fair eeacely qualBl Her Ite Seat TaTAT a tq art & far fadfre eeefaq ataaq fear faa qe gsq araay + aarHKr afafaar atSIRT 24 St arakaay za & fare fafa dash RT seat at gaataR 257 % aie seaea carareaq ay fading az fear,Seat aay gre fate ar saz usea faarr & get FR ate|facifedt & fase eo gt Gar aia afta st gu, ufafawifca—fan (vem 2) afeftar, 1965 at ere 24 % ata fact ermal are sega at we faa a TART GTa 8 gt ge THe F araH fant arom safer at are & arfnea & qzmel fet ancl 1 ag ara ease 2 fs fara afafray, 1965 at are 24Sr STAT (8) ate a afanar af 788, ag daa aorraTatFratcor & aeare % gt 21 fafa: ag aftamar fea area suf &Ta aT farer F ary vel BY or aaa(Fer 23) .fac (wer 2) afefran, 1965 at atta & ag ata aga“Bee gt Te 3 fe ag ara oa eafeaay at Ta Tala HT FS fareaa frat warSt arty tat aa gee wat ated & fae seglaqiara + cay afer fearate fat ag afar aaa qt gazBt H gaTGT Ww 1 ae are faearag er 8 aa 8 fe ag ofitsBratt ea % gare series Peat var ar fae fe B® qa wr carATA ST aH A AF aa ear var B 1 fey ge ara at geegarol BS arama adFt caer afafrarns He B freraqese BTare feat OF aqe at st Sera eter & are fear Tat 8, CICBW aT ate aeAfe BA aT agi at 1 ate sq acta at ma ferar argGt gaat ata ag sir fx are TET at BT faraifrat ae ayeraeat & ara FT ge fase acaheal at fear tara afafray_Rare 24% aha faawh ren wth. freifedt at ae a 7fearg 1S ary a) aed ara & wy H yae Ht at ax U Bargit fis cae aa eels fretted & aa sar ez Tet et | (Ta 14) 4. The acceptance or voluntary disclosures under s 24 of the Act and the payment of tax thereon by the creditors could not, in law, justify the deletion of the amount of Rs. 46,250 as_it represented the assessee's income from undisclo-sed sources. In a case of this description, there was no question of double taxa-tion which was a situation of assessee's own making in getting false declarations made in the names ot the creditors with a view to avoid higher slab of taxation. Once it was found that the income declared by the creditors did not belong to them, there was nothing to prevent the same being taxed in the hands of the assessee to which it acrnally belonged. [ 861 H, 862 A-B, 863 CJ Manila! Gafoorbhai Shah v. Commissioner of Income Tax, (1974) 95 I.T.R. 624 Gujarat; Badri Prasad & Sons v. Commissioner of Income Tax, (1975) 98 I.T.R. 657 Allahabad; Pioneer Trading Syndicate v. Commissioner of Income Tax, Lucknow, (1979) 120 J.T.R. 5 (Full Bench Allahabad) and Additional Commissio-ner of Income Tax v. Sa111arathmal Santoshchand, (1980) 124 I.T.R. 297 Madhya Pradesh, approved. Rattan Lal & Ors. v. Income Tax Officer, 98 IT.R. 681 Delhi; Shakunta/a Devi & Ors. v. C.I.T., (1980) 125 I.T.R. 18 Delhi and Mohd. Ahsan Wani v. C.I.T., (1977) 106 I.T.R. 84 Jammu & Kashmir, overruled. 5. The declaration marle under sub-s. (2) of s.24 of the Income Tax Act, 1961 bad to relate to income actually earned by the assessee. It did not require any investigation into the correctness of the declarations or any determination G of the amounts belonging to the declarant. The mere charge to tax on the amounts under the Voluntary Pisclosure Scheme could not have the effeet or con-verting the money from the deductions from the books of the assessee into the income of the declarants if it did not belong to it. It was, therefore, open to the Income Tax Officer to investigate into the source of the cash credit amoun-ting to Rs. 46,250 standing in the books of the assessee in the names or the H sons of the Managing Partner. (859 C-D, 860 F-G] Per Pathak. J. l. The making of an assessment against a declarant on his disclosure atatement under section 24 of the Finance (No. 2) Act, 1965 caMot d~prive Income Tax Officer of jurisdiction to assess the same receipt in the hands of another person if, in a properly constituted assessment l'roceeding under the Income Tax Act, the receipt can be reg~rded as the taxable income of such other person. [852 G-H, 853 A] 2. The liability imposed under section 24 of the Finance (No. 2) Act, J 965 is identifiable with the income tax liability under the Income Tax Act. The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it. Consequently the general principles which apply to assessments made under the Income Tax Act would, except for provision to the contrary, be applicable to assessments m;,de under section 24 of the Finance (No. 2) Act, 1965. Accordingly when the assessment to income tax is made under the latter enactment, it will be governed by the general principle that a finding recorded therein governs only the particuler person assessed. [852 B-D] 3. The finality enacted by sub·s. (8) of section 24 of the Finance (No. 2) Act, 1965 attaches to the assessment of the declarant only. It cannot in law operate in favour of or against any' other person. [852 F] ge Fatfae Aoorsal (dear 2)ay afafran, at we ges 1965 atc. at sat are Oat 24% arg aha are & 1eforad sar way 3} agt ata ate safe} dade % aan Hr FTVa ar as safe aaa afyariy X Fererifeett ait tera faci ¥ardt ar weal st at sae at af qed car ® eq F fretfcdt awee aTaat afar st fear g1 stare (8) & ata geq arSera srerer (6) & ate Hale uses NER oa BR gag¥& @ 1 svarer (4) & at armae argae & ag ata 8 oat =fe afe sear ag warara at rar’ fe arene afenre aT Seoot ade & qa aeqe atfce are ar eas feet war wr car aafrat mat g ar car war frat war amar var f at ag ate far ® «s ewaerey eararera favia afawt [1982] 2 ate fro do tae ga sara a ferfad arta BAT ANT saat va off atonal gy or Bar RE AY cafes aT ca area F ofr sree HEAT ae& ag srare (5) # aefia aay ara Harare Hr Hat HIBC||softy Uses ae Fane ata ST THAT BAS Ft Grae (6)& qeta tar arta Fra FY faa a TS Z oY ag ate ane!gaarer (6) & aelta frat var aS Hr TE sree srarer (8) areafan aar fear var 2.1 ge care oTaTe (8) are are 24 ayodramarer (6) % ae fing ag AEH ade HT et afar eTET fearsat 3 a fax eater & athe Sarat gree Bt ng dram ox faatfer=}at al, dart fe afafraa. Bt are 24 at gqarer (3) ¥ aeafaseafew ofeRerat are SAAT AAT Fl FAT AAT faanrt fafarra;BWA B, FB ag ¢ fe aat fad(deat2) afafaaa, 1965 at are 24.aft araner (1) % arafase aearetgt aes ger crates FaTATA wr 28aqGeqfang wrdardy wer A Dar aa g fear aa & arafandaa & are 24 at aeare (1) ¥ ada te wer Fe ada|etant HUT FY Atel HY TE S at etal ar arratt ara Bt tt tatywarm & dei H coo vat at ot aaa A aomrsal at eat ATAa at 1 cafe ate ate satiate wwe F ade F ater Hee eT|gaat art ae wet 2, afer frat aca ania at ara &, at tat aaxe ara val2 at ar THe at areas SBT ale ala % dae #ATT TAT VF TF I afafaan at are 24H tet HE ateat & frat arzne aferaret at frat 08 fretted are sa arenerarr A Te TTT FATT serateat Hoar at mg cH aT aftga ale elt F adla ga it Ht Tafea SUT F areasfaatfeat ater fag 1g erect & Agee wal @, Gar way h afarae Ha B dae F sia He & Dar at ahet Agi TH TTT HVagi auf & Fare Pret ara cutee FT dda 2, agi ae frewte,xgrat 24 HT ATTHe afafran, 1961 atarer 68 H HIT Acaraeygata & | (tt 16,17) & | (tt 16,17)ga | (tt 16,17) (tt 16,17) Safar 16,17) wer te Tae, AAS ef FT CF ate 4 maare & gral afte garer faertFea. & erat at are gal ATT TX BT@qral AT AHA S | RT AT > fed fy aaaTayler ST HEaqua t aat Boat | ae feats fratfedt grer eae TeIAT AT AY SI Bae cay ga gfrestor & carmatell & are F Aooraearé ot faresME SAY aT ge HT Az A sar Wy UH aT Sa Fe ata BT aT aaTar fe aareatal are afer ara gaat wat at,at tat até ara (ange 2 fas Pratfecte erat & se ara al TT aega: gat at ara 2, a SC afeefie wet & Ger are 1 (Fr 19) \.raat afrard a araee ofafaaa, 1961 a art 68e acta feat gat fretfedy & area qt fare wot aaa Teaaaita wet ar afrere or fs gar sae at af we doormal“BY a oar aati fae (aear 2) afefram, 1965 st are 24 anysaaTe (3) ater Uae fates ofemerat Asser wacr cate areOTT aT UF Mar Haig St as 3 1 ga eaty R asta PenrsayaT Tt tery feat gar 3, ag sat can aa atfra @ faa wenSU F.Tea Terorgat & Feet Frater F Mer ag area) aaT BT TS TAT at AE array eaeq ag cara frat var & atxfatty wr & cat feafe F gata Nisa wea atoafs ate sak Haat ateoraat st ara & fara feaifedt at ara Fo otet B facaaathea frat ar war ati gafae det ae at ata aét & faraaATTHTsafes ate aa ata Brtay fratfeat H agar st at Sarafeat a de F as war ake at 7 gah cH ea ateaedbazor ay araa & eqere we ah fs ag way va cule at ai¢ frat afafran at arer 24ata atom at S 1 (Fc 21) faa (eat 2) afafraa, 1965 at are 24 % ata fratMerorsat ae vega fee ae deo frac ar Prater es aneTAHT TTS BT CH et Ha eTfeedzateafer ¥ ara ®fratfze wet & adt Mar ot asa, safe aaa afefara & atawafer é7 & afer at aE faafer ardard & dea set wea A RA ay cafe a were HR MAT aT awaT a 1 (Fer 24) wo arfo arzo 1981 Uo do 1562: arfo arzo 1981 Uo do 1562: arzo 1981 Uo do 1562: 1981 Uo do 1562: Uo do 1562: do 1562: 1562:wena garfen caoaleeit gata aaa|agafca freta|AZT, TATA(Ahmed Ibrahim $. Dhoraji ».TheCommissioner of Wealth Tax, Gujarat); {1981] wo arfo arzo 1981 Uo do 1562: arfo arzo 1981 Uo do 1562: arzo 1981 Uo do 1562: 1981 Uo do 1562: Uo do 1562: do 1562: 1562: 10 saat, 1974at faoifae1972-73at atant adie{fo 1560 (maeg) & faciastgye 1973-74 at free arte— Pea 221 /aaage F araae afafrag, 1961 a are 256 & adheAAHT ANT SIH, TITTT MANS, TAATE are Feat TAT HT tfade: fratza at1967-68. earateaa at facie earaifacfe vo dito aa a aqet gararatfanfa fo uso FHerAzarst ate a favafearatxaratfaatt ato Uae TSH A Baa fasta a agate cast Hea eTmat & fata fear) earatfania @a—- agama aaat ata afearn, qwaagy. (faa dat 7atta afeacn ser var zg) are fratfedt at cea ot araHt afa-fazn, 1961 A are 257% aeta aye fafesz fear var gt eafaze at araarnat gafaq cet fe faa (aeat 2) afafiaa, 1965(fat data F afafaam ser ava g)al aver 24 F aes Caeoarqaer cata & aaate cara F acaey F fafarr geeeorataahart fay ag fafaeaat # faea-frg na ooae faq eat 2. fraffedt aad orarsare aeararae weitere Gre| RA GT Tare artlare & feaay wegararay ale gas dha aren GT UM FANT, CITA FATT ATT TAMGHATT Gar Tara AayeH Tr AATHA F fees wierd Gasareal s faa afeafaa fear var Ftfratta ag 1967-68 F-araa, faarar gata Aart at 1966 ataavat at aarcarslat é,Frater at aaa & dkra grayeafasra at fratfed) at teradt F adore } sia gat ®:sia 9,250 wag at cia waa aar frat frre faaco A fer ae a RRS5 ag9,250 warTAT HATZ9 ag9,250 agagala Fare1 ag9,250 RrTIAA FATT16 ag9,250 waxAAT FATT18 ay9,250 eq,_46,250 way araae afanred + aagare faalfedtat gat aaek oar taal a6afrer caer HUAMT,SAT ale aa F fee Ferararsa seaAriat’ Hegatata F ZI ae F Gor Tar avegls TeaTIG cHal Faay H qaraatal at sare F ate A qraaret 2% A qaarx Hrfear 1 gah fardta seglt ag edtere fear fa carpets ar aetaqaa Ala HI ata Ag Fl aga: art sala ag at aarar fe %aH TAT THAT H eae H are F eqsiawy ahs asst 3. atant afaare % awa ag asta a af fe createa arom THet wal Haale var a sae feat g ate aw arr at seem Frat varsa araet ages F ara fearg atega ax ec adaa -fearaars gafa 46,250 ead at we a asae ferme ala & gf fastfedd at ara aah araT T aaaT tSaafe aac afaara X ag afafaaifca ffaar fe cate % relaFae ary aa cH HT IT Hae Aeorsat at gt afafear sua& ge at aid & a fs se aafaa ay fae ara at aega: arare BIedi at ag wt afafratfea fear fe afe fraffedt sat are F sorpatatt & are & frase aay ary H HS ara wel 8, ATA |TaT-afgat % faarg 78 46,250 wa at wae HAT THT BT AT ATalfaar fag wea H aawe wer & salar Ga a wae fae ae aat& gf freifedt at ara AX Tae sar ate | TAR AATGATT Aeanal gar eae Raita maaNoor Hwa F TATA Hat eT ITmare my ae we SaTT at afer J oak ara gz fears weeafag aagare sala fratfedt at ara % a sae fag aT alatag€ 46,250 aaa at ara at wt aig feat N~~y 4, warn aaa argad (atta) arene afesrd & facia a agaa aa ge ate sela ag afafratfea fear fs aa afafraratat at aren Mtaorat 24 & aeta at Ge feel at cafar med get 2 faey Ae eam ag frater at rae Bt wt alam fear atararf1 gam afeeata & setaraa F aaNet Haag at Age:|gears ax fzat svat atfga aalfs ag ara exces aay @ fs saefea Sfara Four gS ay ae sAwT TUT Aine maT aah afeherAA& adta freatat & arafara aa S araee Healy a aeagy FATgfafeg atx aaa 2, aela aaqart ag afafasifes fear fe settaarmatal aret sar & fee me seer a ogat Aetare STfear d ate saat HT Mae BT 24 a fart ag faate aal satanal fe ag ara waa aareatal & arafeaa ge ate sal ara I<ga are aareatat & afer alte gare fratfeet& arora & at arewx agl aera or awat gafae za fafa aaa afearet areafta aide aaa aval Var ST ama | gafag aelTH ATH ATT(atta) % 46,250 erg at Tan at Frere BF a fau fader fears‘aaea fanin a gas face atta afaacr F ane aie Fl XL>° 5. aie afeaen age araatargar adtr & facies & 3:1. The jurisdidion of an Income Tax Officer when making an assess-ment is concerned primarily with the issue whether the receipt under conside: ration constitutes the income of the assessee before him. Any finding reached by the Income Tax Officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person. The only exception of this rule centres on the limited class, and for the limited purpose, defined by the Supreme Court in Income Tax Officer, A-Ward, Sitapur v. Mur/idhur Bhagwan Das, 52 I.T.R. 335 at 346. [852 D-F] Ahmed Ibrahim S. Dhoraji v. The Commissioner of Wealth Tax Gujarat, [1981] 3 SCR p. 402 and Income Tax Officer, A-Ward, Sitapur v. Murlidhar Bhagwan Das, 52 ITR 335 at 346, applied. C1vIL APPELLATE JURISDICTION: Tax Reference Case No. 19 of 1975. Tax Reference u/s. 256 of the Income Tax Act, 1961 made by the Income Tax Appellate Tribunal, Jabalpur Bench, Jabalpur in R.A. No. 221/Jab/73-74 arising out ofl.T.A. No. 1560 (Jab)/1972-73 decided on IO-l-1974; Aseessment Year 1957-68. S. T. De.•ai, B.L, Noma and K.J. John for the Petitioner. V.S. Desai, Champat Rai and Miss A. Subhashtni for the Res-pondent. The Judgment of A.P. Sen and E. S. Venkataramiah, JJ. was delivered by Sen, J~ R.S. Pathak, J. gave a separate Opinion. PATHAK, J: I agree. The acceptance of a disclosure state-ment made by a declarant under s.24 of the Finance (No. 2) Act, 1965 cannot confer immunity on another person from tax liability in respect of the same sum of money. As was held by this Court in Ahmed Ibrahim S. Dhoraji v. The Commissioner of Wealth Tax Gujarat (1) the liability imposed under s.24 of the Finance (No. 2) Act, 1965 is identifiable with the income tax liability under the Income-tax Act. The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it. Consequently, the general principles which apply to assessments made under the Income-Tax Act would except for the provision to the contrary, be applicable to assess-ments made under s.24 of the Finance (No. 2) Act, 1965. Accor-dingly, when the assessment to income tax is made under the latter enactment, it will be governed by the general principle that a finding recorded therein governs only the particular person assessed. The jurisdiction of an Income Tax Officer when making an assessment is concerned primarily with the issue whether the receipt under consi-deration constitutes the income of the assessee before him. Any finding reached by the Income Tax Officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person. The only exception to this rule centres on the limited class, and for the limited purpose, defined by this Court in Income-Tax Officer, A-Ward Sitapur v. Murl.d/wr Bhagwan Das.\') Viewed in the light of that principle it is apparent that the finality enacted by sub-section (8) of section 24 of the Finance (No. 2) Act, 1965 attaches to the assessment of the declarant only. It cannot in law operate in favour of or against any other person. I am of opinion that the making of an assessment against a declarant on his disclosure statement under s.24 of the Finance (No. 2) Act, 1965 cannot deprive an Income Tax Officer of jurisdic-tion to assess the same receipt in the hands of another person if, in (2) 52 T.T.R. 335, 346. XL>° TENN Tet gat ate sar arerwe afersra F fafreaa a stay car |wash ag ce dt fis araae aferd § ga wae} qar wet at at*.fereifectt ath Srar-afgal & ord af a a gaz a wf aad gar wegarrat dhe gt fearaalfs ea ara ar gar aa qatarfe gar.pater arzt fore ara at aout wt we ot ag saat wet oh gataoe ara ve fraifedt # are & feat ag age: arabe A, weyafaaira swt a dar ad at agar ft afeazy at ae watat fs afafran st24F adte ot ge a ak 8 ae gaaMenrmat # fae a 2 ate gat tet as ara adi & feat sar:aS ae ata ate saat vale F araey F aeq fee wt geDar at ak 1 ade afewwr F sekarara F garq B cara F|wad gu att saaret at arg at cart ¥ xaR eta et gu att saaret at arg at cart ¥ xaR eta et att saaret at arg at cart ¥ xaR eta et saaret at arg at cart ¥ xaR eta et at arg at cart ¥ xaR eta et arg at cart ¥ xaR eta et at cart ¥ xaR eta et cart ¥ xaR eta et ¥ xaR eta et xaR eta et eta et etqey at at cart H waa gu fe cat & feat art ora araT aa wel at, ag afafaatfca fear fe aaa gfaant arag fia earatfaa a ar fe fratfeat areaz afafaara, 1961 aTT 68 ¥ ate aHdd ger want F ata ate saat vafe & dag# alt aq aga & afaca or fades aa we aa gafae Sea THefay mq atat & gf frsifedt at ara gd ana aren) gak arefaatfedt + araee afefaan, 1961 #9 arr 256% ada aah:eTTea AAara fale aeaedd qua} at neq gee esqcarom at are & fry fafeos aed & fae dea Fea 1 wad gu att saaret at arg at cart ¥ xaR eta et gu att saaret at arg at cart ¥ xaR eta et att saaret at arg at cart ¥ xaR eta et saaret at arg at cart ¥ xaR eta et at arg at cart ¥ xaR eta et arg at cart ¥ xaR eta et at cart ¥ xaR eta et cart ¥ xaR eta et ¥ xaR eta et xaR eta et eta et et «6. afafrasy at are 24% ata aga a. ae we atarerfas weftarefatter geq cararaal & yaar Bawaren ate afratr t arene afafaar, 1961 a are 257& aetea fafa acaeet farafafaa seat eee eararaa at ua &fare fafese fear aafq— 1. RT Be ara & aeal ate ofefeaftal at 2az gc waer siftaret 46,250 era at gia gar zeal ® atfacg% araer Farag aT ae | ate gah arare F aefacet tana & safe cat Faery arc fae (wear 2)—afefrag, 1965 a are 24% aia sade & asad:feta rz uses orfiteret aver ardandt at oT Tet at ? 2. afe cae oer er sat AaTeRT Bate Fratfefaat& cer F fear arar & at sar 46,250 wae at afafeaa waaa) a wae far ag atal & gf Fraterat 1967-68 ¥ facfratfedt at ara araee saat are % sgat ae ateanfaae? .7. faare & aeafan ger seq % aer aga aferea Ft agawet agg fs gat afafray at are 24% gaara} sr ga TAITaateaaa fear ar asareé fe saa afafran & seat & aitSTITT BTA are ease J fuer fat seq cafe Hy Hi ara, FearaaUT BE at Tt aHat Fi aVi ag ara seaadla & PR aaa aesal BYat ata F fae gt faatanes X ara ate gactsgar qaeq ata.Fram, 1976(1976 ar afefran gear 8) H are 18 at aftafaefear 3 faat fafafece er 8 ae sade fear care fe acer saafad F fear afafary & feat Ht ara ar ag aateana adhfear srear fe afafaan & soaeal ® asta Poor wit ae cafe“& fara fect aex cafe a aS ara, Fearaa ar we et ar aad 3Ha agi faareoite se age fe 1976 % afafaag dear 8 F ta‘sraeeg FS a fee ot 8 saat ofeora ag at gwar & fe afafraral are 24 F ata at we ceo a var ara faa anaré“RIT HA are egfeaal & fees. caferfare afefaan B ahasrafira aét fear are ate aar araae afafira, 1961 at“a 68 & aele fraffedt at Aar-afedt¥ saad awe warwaa & ha ate saat cafe BR ara F ako Hwa J aafaa‘marae afeard a afeaal a aaa fear at amar 2 ste fratfeatEIT fax ay eqedlauy at aaalowae araHt aeatere frat aTTHT gat aa.sae fee ae Mae gs vast az anat ataeaT ey| |8. fret (aear 2) afafaan, 1965 at are 24 Fda cant>mM Azer Agee HA F Gea F yaaa fear aar & fer oz 1 wet, 1964 # ar gad od ares AF are Frater ag ¥ aka‘eemy caq daz, 1922 at arant afafaan, 1961 % ata Fzsafer fear sat art srarer (2) % fafea dfa F graze (1)mia see fag at az .ga VEN TT Sree (3)AGA BT a properly constituted assessment proceeding under the Income Tax Act, the receipt can be regarded as the taxable mcome of such other person. I would answer the first question in the affirmative, in favour of the Revenue and against the assessee. That being so, no answer is necessary to the second question. The Commissioner of Income-Tax is entitled to his costs of the reference. SEN, J. This is a direct reference under s. 257 of the Income Tax Act, 1961 made by the Income Tax . Appellate (Tribunal, Jabalpur, for short, The Appellate Tribunal), at the instance of the assessee. The reference is necessitated due to divergence of opinion, as reflected in the various decisions of different High Courts, with respect to the scope and effect of the Voluntary Discosure Scheme under s. 24 of the Finance (No. 2) Act, 1965 (the 'Act', for short). The assessee, Messrs. Jamnaprasad Kanhaiyalal, is a partner-ship firm. The firm consists of 4 partners, namely, Kanhaiyalal and his 3 major sons, Rajkumar, Swatantrakumar and Santoshkumar with his minor son Satishkumar admitted to the benefits of the partnership. In the course of assessment proceedings for the assess-ment year 1967-68, the relevant accounting year of which was the year ending Diwali, 1966, the Income Tax Officer (ITO, for short) noticed in the books of account of the asssesee five Cash credits of Rs. 9,250 each in the names of five sons of Kanhaiyalal, as detailed br,low : The ITO accordingly called upon the assessee to explain the genui11e-ness as well as the source of the cash credits. On being questioned, Kanhaiyalal the Managing Partner, disavowed all knowledge as to the capacity of the creditors to advance the amounts in question. On the contrary, he admitted that the creditors had no independent source of income of their own. In fact, he further stated that he