Judgment

SEN, J. (For himself and on behalf of Venkataramiah, 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 Disclosure Scheme under S. 24 of the Finance (No. 2) Act, 1965 (the Act, for short).

2. The assessee, Messrs. Jamnaprasad Kanhaiyalal, is a partnership 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 assessment 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 assessee five cash credits of Rs. 9,250 each, in the names of five sons of Kanhaiyalal, as detailed below :

Rs.

Sailendrakumar 5 yrs. 9,250/-

Satishkumar 9 yrs. 9,250/-

Sunilkumar 7 yrs. 9,2