Writ not maintainable if revenue clarified that income disclosed under PMGKY to be excluded from block assessments

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Writ not maintainable if revenue clarified that income disclosed under PMGKY to be excluded from block assessments 

Facts:
 
a) Assessee deposited certain amount in current account with ‘U’ Bank in pursuance of the Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016. A notice under section 131 was issued by the Assistant Director (Investigation) to furnish the details of the cash deposited in the aforesaid bank account.
 
b) Thereupon, Department not being satisfied with assessee’s reply, conducted a search at the residential and business premises of assessee and issued a notice under section 153A. Assessee filed instant petition challenging the notice under section 153A
 
The High Court held as under:
 
1) Clause 199-I and 199-J of PMGKY clearly provides that the amount of undisclosed income declared under PMGKY shall not be included in total income of the declarant for any assessment year, if the declarant makes the payment of tax, surcharge and penalty. Further, embargo has been placed upon the department not to reopen any assessment for reassessment under the said provision.
 
2) The show-cause notice issued under section 153A pertained to the assessment years 2011-12 to 2016-17. It could be possible that the income surrendered by the assessee related to any period covered by the aforesaid notice, and for those assessment years the embargo as provided for in clause 199-I and 199-J would apply.
 
3) It was for the Assessing Officer to come to such a finding after going through the declarations made by the assessee under the PMGKY as well as the response filed pursuant to the said notices.
 
4) After going through the written instructions submitted by the respondents, the Court was satisfied that the apprehension and the grievance of the assessee had duly been taken note of by the respondents and it was expected that it would be taken into consideration, while making the final assessment order under section 153A.
 
5) Therefore, the grievance of the assessee stand fully redressed in light of the written instructions of the respondents which stated that the income which had been disclosed by him under the PMGKY would be excluded from the assessment of the block year for which notice under section 153A had been issued. 
 
  – [2019] 101 taxmann.com 176 (Allahabad)

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