All India Federation of Tax Practitioners and Another Vs. Union of India and Others
EmailAppeal: SLP ( C ) No. 18856 Of 1997.
(From the Judgment and Order dated 29-7-1997 in WP No. 973 of 1997 of the High Court of Bombay)
(From the Judgment and Order dated 29-7-1997 in WP No. 973 of 1997 of the High Court of Bombay)
Petitioner: All India Federation of Tax Practitioners and Another
Respondent: Union of India and Others
Apeal: SLP ( C ) No. 18856 Of 1997.
(From the Judgment and Order dated 29-7-1997 in WP No. 973 of 1997 of the High Court of Bombay)
(From the Judgment and Order dated 29-7-1997 in WP No. 973 of 1997 of the High Court of Bombay)
Judges: S.C. AGRAWAL & G.T. NANAVATI, JJ.
Date of Judgment: Oct 20, 1997
Head Note:
INCOME TAX
Voluntary Disclosure of Income Scheme, 1997
Section 72 read with Income tax Act, 1961 – Section 133A, 132, 158 BFA Validity – Policy of Government to check tax evasion – Statement made by Attorney General in that connection – Adequate measure taken up for tax evasion, penalty and prosecution apart fro keeping complete confidentiality. Held that the Judgment of High Court is not to be interfered with . ( para 5 )
JUDGEMENT:
O R D E R
1 . In this special leave petition filed against the judgment of the Bombay High Court the petitioners are seeking to chal-lenge the validity of the Voluntary Disclosure of Income Scheme, 1997 ( VDIS ) . The High Court in an elaborate judgment has dealt with the various submissions made assailing the constitutional validity of the Scheme . We are in agreement with the said view of the High Court .
2 . We have heard Shri Dinesh Vyas, learned Senior Counsel appearing for the petitioners, in support of the special leave petition and the learned Attorney General for India for the Union of India . The learned Attorney General has placed the following statement indicating the policy the Government is following and will be following in checking tax evasion and the said statement is reproduced as follows :
“1 . After 31-12-1997, the Income Tax Department will con-siderably step up survey operations under Section 133-A of the IT Act, 1961 and search operations under Section 132 of the IT Act, 1961 .
2 . According to Chapter XIV-B of the Income Tax Act as amended w.e.f. 1-1-1997, if in the course of a search, undis-closed income is detected then the assessee is liable to the following :
( i ) Tax at the rate of 60 per cent ;
( ii ) Penalty which can be up to 300 per cent on the tax evaded ;
( iii ) Interest under Section 158 BFA .
3 . In addition, the Finance Minister has announced that in every case of detection of undisclosed income, prosecution will be launched . The relevant provisions are in Chapter XXII of the Income Tax Act .
4 . Besides tightening up of legal provisions, the following steps have also been taken :
( i ) Acceleration of the process of issuing Permanent Account Number ( PAN ) ;
( ii ) Acceleration of the computerisation of the Income Tax Department ;
( iii ) Installation of software to detect assessees who satis-fy the criteria laid down under proviso to Section 139 ( 1 ) of the Income Tax Act .
5 . Government is committed to making a success of the VDIS-97 for fulfilling the objectives set by the Government in FM’s Budget Speech . We also wish to emphasise that Section 72 of the VDIS-97, guarantees complete confidentiality in respect of decla-rations . “
6 . Taking into consideration the aforesaid statement made by the learned Attorney General, we are not inclined to interfere with the impugned judgment of the High Court . The special leave petition is, therefore, dismissed .
1 . In this special leave petition filed against the judgment of the Bombay High Court the petitioners are seeking to chal-lenge the validity of the Voluntary Disclosure of Income Scheme, 1997 ( VDIS ) . The High Court in an elaborate judgment has dealt with the various submissions made assailing the constitutional validity of the Scheme . We are in agreement with the said view of the High Court .
2 . We have heard Shri Dinesh Vyas, learned Senior Counsel appearing for the petitioners, in support of the special leave petition and the learned Attorney General for India for the Union of India . The learned Attorney General has placed the following statement indicating the policy the Government is following and will be following in checking tax evasion and the said statement is reproduced as follows :
“1 . After 31-12-1997, the Income Tax Department will con-siderably step up survey operations under Section 133-A of the IT Act, 1961 and search operations under Section 132 of the IT Act, 1961 .
2 . According to Chapter XIV-B of the Income Tax Act as amended w.e.f. 1-1-1997, if in the course of a search, undis-closed income is detected then the assessee is liable to the following :
( i ) Tax at the rate of 60 per cent ;
( ii ) Penalty which can be up to 300 per cent on the tax evaded ;
( iii ) Interest under Section 158 BFA .
3 . In addition, the Finance Minister has announced that in every case of detection of undisclosed income, prosecution will be launched . The relevant provisions are in Chapter XXII of the Income Tax Act .
4 . Besides tightening up of legal provisions, the following steps have also been taken :
( i ) Acceleration of the process of issuing Permanent Account Number ( PAN ) ;
( ii ) Acceleration of the computerisation of the Income Tax Department ;
( iii ) Installation of software to detect assessees who satis-fy the criteria laid down under proviso to Section 139 ( 1 ) of the Income Tax Act .
5 . Government is committed to making a success of the VDIS-97 for fulfilling the objectives set by the Government in FM’s Budget Speech . We also wish to emphasise that Section 72 of the VDIS-97, guarantees complete confidentiality in respect of decla-rations . “
6 . Taking into consideration the aforesaid statement made by the learned Attorney General, we are not inclined to interfere with the impugned judgment of the High Court . The special leave petition is, therefore, dismissed .
