Law:

Section:

Section 143, read with section 256 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessment year 1994-95 - Assessee made voluntary disclosure of income in respect of assessment years 1972-73 to 1975-76 - ITO made addition to assessee's income for assessment year 1974-75 and held that assessee was entitled to immunity in assessment year 1974-75 only to extent of one-fourth of amount voluntarily disclosed - Whether question as to whether assessee could claim to set off of entire disclosed income pertaining to assessment years 1972-73 to 1975-76 against addition to income for assessment year 1974-75, was question of law to be referred - Held, yes FACTS In respect of the assessment year 1974-75, the assessee filed its return, disclosing a total income of Rs. 55,702. While proceedings for assessment were pending before the ITO, the petitioner made a disclosure of income of Rs. 31,600, in respect of the assessment years 1972-73 to 1975-76 under the Voluntary Disclosure of Income and Wealth Ordinance, 1975. The ITO, made an addition of Rs. 33,566 to the disclosed income of the assessee. On appeal, the assessee contended that it should have been given credit for the disclosed income of Rs. 31,600 against the addition of Rs. 33,566 made by the ITO. The Commissioner (Appeals) allowed the appeal and remanded the matter to the ITO. After the remand, the ITO held that since the disclosure of income was in respect of the four assessment years 1972-73 to 1975-76, the assessee was entitled to immunity in the assessment year 1974-75 only, to the extent of one-fourth of the amount of Rs. 31,600. The AAC and the Tribunal dismissed the assessee's appeal. The application filed by the assessee under section 256(1) was also rejected. On application under section 256(2) : HELD The questions as to whether the assessee could not claim to set off of the entire disclosed income pertaining to the assessment years 1972-73 to 1975-76 against the addition to the income for the assessment year 1974-75, and, whether the Tribunal was justified in law in dividing the disclosed income of Rs. 31,600 into four equal parts and considering each part as the income disclosed in…

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