June 2022
Revision — Powers of Commissioner u/s 263 — Declaration under Income Declaration Scheme, 2016 — Declaration accepted and consequent assessment — Such assessment cannot be set aside in proceedings u/s 263
By K. B. Bhujle
Advocate
20 Principal CIT vs. Manju Osatwal [2022] 443 ITR 107 (Cal.) A. Y.: 2014-15 Date of order: 11th February, 2022 S. 263 of ITA, 1961 and Income Declaration Scheme, 2016
Revision — Powers of Commissioner u/s 263 — Declaration under Income Declaration Scheme, 2016 — Declaration accepted and consequent assessment — Such assessment cannot be set aside in proceedings u/s 263
The assessee is an individual. For the A.Y. 2014-15, the assessment was completed u/s 143(3) of the Income-tax Act, 1961 by an order dated 6th May, 2016. After the assessment was completed, the assessee availed of the benefit of the Income Declaration Scheme, 2016 (IDS). The Principal Commissioner accepted the declaration.
Thereafter, the Principal Commissioner invoked the provisions of section 263 and passed an order revising the assessment order. The Tribunal quashed the revision order holding it to be without jurisdiction.
On appeal by the Revenue, the Calcutta High Court upheld the decision of the Tribunal and held as under:
“i) The Income Declaration Scheme, 2016 was introduced by Chapter IX of the Finance Act, 2016 ([2016] 384 ITR (St.) 1). Chapter IX of the Finance Act, 2016 is a complete code by itself. It provides an opportunity to an assessee to offer income, which was not disclosed earlier, to tax. Chapter IX provides for a special procedure for disclosure and charging income to tax. It lays down the procedure for disclosu
