The voluntary disclosure of income under the VDIS should not be included in the total income for any assessment year under the Income-tax Act, and the tax paid under VDIS is not refundable.

ORDER

Petitioner has filed this petition being aggrieved by the order dated 29.03.2021 passed by Commissioner of Income Tax, whereby revision filed under section 264 of Income Tax Act in respect of assessment of the year 1996-97 and 1997-98 has been disposed of against the petitioner.

The facts of the case in short are as under: -

1. Petitioner became the assessee of the income tax department in the year 1997-98. At the relevant time, he was an employee of United India Insurance Company. He did not file an income tax return from 1993-94, 1994-95, 1995-96,1996-97 and 1997-98 within the prescribed time as per provision of 139 (1) of Income Tax Act. He filed his IT returns for the above 4 assessment years only on 23.01.1998. According to the petitioner, he could not file the above IT returns within the prescribed time because certificates under Section 203 of Income Tax Act vide form No. 16 which were issued by the employer only on 24.06.1993, 31.05.1994, 03.05.1995, 13.05.1996 and 11.07.1997 for the assessment year 1993-94, 1994-95, 1995-96, 1996-97 and 1997-98 respectively. According to the petitioner the advance tax had already been paid for the aforesaid assessment year well before the prescribed due dates by the employer. In these returns, the petitioner has shown his regular income from salary, interest, dividends and capital gains.

2. The Central Government introduced the Voluntary Disclosure of Income Scheme, 1997 (hereinafter referred to as "VDIS") by introducing CHAPTER IV comprising sections 62 to 78 in the Finance Act, 1997. Under the VDIS all persons were permitted to submit income tax return between the period the date of commencement of scheme till 31st day of December 1997 in respect of any income chargeable to tax under the Income-tax for any assessment year, firstly- for which he has failed to furnish a return, secondly-which he has failed to disclose in a return of income tax furnished by him, thirdly, which has escaped assessment by reason of the omission or failure on the part of such person to make a return under the income tax Act. Under Section 65 of Finance Act, 1997, a declaration under subsection 64 shall be made to the Commissioner of IT in the prescribed form. The tax payable under this scheme shall be paid by the declarant and shall submit proof of payment of such tax. Section 68 of Finance Act, 1997 provides that income so voluntarily disclosed shall not be included in the total income of the declarant for any assessment year under the Income-tax Act on two conditions namely the declarant credits such amount in the books of account, if any, maintained by him and the income-tax in respect of voluntarily disclosed income tax is paid by the declarant within the time specified in section 66 or section 67. After fulfilling aforesaid requirements, the Commissioner shall grant a certificate to the declarant. Section 70 says that any amount of tax paid under this VDIS scheme shall not be refundable under any circumstances.

3. The petitioner took the advantage of aforesaid VDIS scheme and filed an application under Section 65 (1) of the said act on 19.12.1997 disclosing the income to the tune of Rs.1,57,410/-, Rs. 1,81,823/-, Rs. 2,54,955/-, Rs.3,34,234/- and Rs. 4,46,525/- for the assessment year 1993-94, 1994-95, 1995-96, 1996-97 and 1997 -98. The petitioner has shown the aforesaid income from sources namely cash, debtors, shares and bank account, which is as under:-

Availability of value of assets as on 31st each year as per Balance- Sheet attached with the returns of income for the A. Y. 1993-94:94-95:95-96, 95-97:97-98

4. In the IT returns for the assessment year 1996-97 and 1997-9