Commissioner of Income Tax vs D.B. Finance (P) Ltd.

K. Raviraja Pandian, J.—This appeal is filed against the order dated 27-12-2006 passed in M.P. No. 174/Mad/2005 in IT(SS)A No. 24/Mad/1998. The relevant block period ended on 10-10-1996.

The assessee was doing finance business. In the assessee''s business premises, there was search and seizure operation u/s 132 of Income Tax Act, 1961, which commenced on 10-10-1996 and came to completion on 4-12-1996. In this case, there was no such warrant u/s 158BC in the name of the company. However, the proceedings have been initiated u/s 158BD as in the case of search proceedings against Shri Dulip Chand Chordia and others, some of whom were, the directors of the assessee company.

At the time of search, evidence was found that the assessee company is having income of Rs. 4,17,400 for the assessment year 1994-95 and Rs. 5,59,240 for the assessment year 1995-96. The assessee did not file return for the two assessment years. The assessee had filed returns in response to notice u/s 158BD including the amounts for the assessment years 1994-95 and 1995-96, but claiming that the application under VDIS, 1997 was filed. The assessing officer treated the undisclosed income as per the provisions of Section 158B(1)(c) and computed the income.

Against that order, the assessee preferred an appeal before the Tribunal, who, held that there was no merit in the appeal filed by the assessee and dismissed the same as infructuous, in view of the acceptance of the voluntary disclosure made by the assessee. Against that order, the assessee preferred miscellaneous petition before the Tribunal, which allowed the said petition on the premise that the certificate dated 15-12-1997 issued u/s 68(2) of the VDIS, 1997 by the Commissioner, Tamilnadu-IV, Chennai has not been taken into consideration by the Tribunal. That factum has been accepted by the Tribunal and directed to delete the amount, which is the subject matter of the VDIS scheme as the same could not be brought to tax once again in the block assessment also.

Questioning the said order, the above appeal is filed by the Commissioner by formulating the following question of law:

Whether on the facts and in the circumstances of the case, the Tribunal, was right in law in allowing the miscellaneous petition filed by the assessee, even though Voluntary Disclosure Scheme application was filed by the assessee after the date of search is valid ?

We heard the argument of the learned Counsel appearing for the appellant and perused the material on record.

It is apparent on record that the certificate dated 15-12-1997 u/s 68(2) of the VDIS, 1997 was issued by the Commissioner prior to passing of original order by the Tribunal. The certificate was also placed before the Tribunal for consideration and adjudication, but the certificate has not been taken into consideration by the Tribunal, while passing orders on 5-11-2004. That mistake, which is apparent on the face of record has been rectified by the Tribunal, which, in our view cannot be rendered as any irregularity, so as to warrant admission of appeal by this Court.

Hence the tax case appeal is dismissed.