Case ID: 4414

Judgment:
ax Reference Case No. 19 of 1975. Tax Reference section 256 of the Income Tax Act	 1961 made by the Income Tax Appellate Tribunal	 Jabalpur Bench	 Jabalpur in R.A. No. 221/Jab/73 74 arising out of I.T.A. No. 1560 (Jab)/1972 73 decided on 10 1 1974; Assessment Year 1967 68. section T. Desai	 B.L. Noma and K.J. John for the Petitioner 852 V.s. Desai	 Champat Rai and Miss A. Subhashini for the Respondent. The Judgment of A.P. Sen and E. section Venkataramiah	 JJ. was delivered by Sen	 J. R.S. Pathak	 J. gave a separate opinion. PATHAK	 J: I agree. The acceptance of a disclosure statement made by a declarant under s.24 of the Finance (No. cannot confer immunity on another person from tax liability in respect of the same sum of money. As was held by this Court in Ahmed Ibrahim section Dhoraji vs The Commissioner (of Wealth Tax Gujarat the liability imposed under s.24 of the Finance (No. is identifiable with the income tax liability under the Income tax Act. The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it. Consequently	 the general principles which apply to assessments made under the Income Tax Act would except for the provision to the contrary	 be applicable to assessments made under s.24 of the Finance (No. Accordingly	 when the assessment to income tax is made under the latter enactment	 it will be governed by the general principle that a finding recorded therein governs only the particular person assessed. The jurisdiction of an Income Tax officer when making an assessment is concerned primarily with the issue whether the receipt under consideration constitutes the income of the assessee before him. Any finding reached by the Income Tax officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person. The only exception to this rule centres on the limited class	 and for the limited purpose	 defined by this Court in Income Tax Officer	 A Ward Sitapur vs Murlidhar Bhagwan Das. Viewed in the light of that principle it is apparent that the finality enacted by sub section (8) of section 24 of the Finance (No. attaches to the assessment of the declarant only. It cannot in law operate in favour of or against any other person. I am of opinion that the making of an assessment against a declarant on his disclosure statement under s.24 of the Finance (No. cannot deprive an Income Tax officer of jurisdiction to assess the same receipt in the hands of another person if	 in 853 a properly constituted assessment proceeding under the Income Tax A Act	 the receipt can be regarded as the taxable income of such other person. I would answer the first question in the affirmative	 in favour of the Revenue and against the assessee. That being so	 no answer is necessary to the second question. The Commissioner of Income Tax is entitled to his costs of the reference. SEN	 J. This is a direct reference under section 257 of the Income Tax Act	 1961 made by the Income Tax Appellate (Tribunal	 Jabalpur	 for short	 The Appellate Tribunal)	 at the instance of the assessee. The reference is necessitated due to divergence of opinion	 as reflected in the various decisions of different High Courts	 with respect to the scope and effect of the Voluntary Disclosure Scheme under section 24 of the Finance (No. (the 'Act '	 for short). The assessee	 Messrs. Jamnaprasad Kanhaiyalal	 is a partnership firm. The firm consists of 4 partners	 namely	 Kanhaiyalal and his 3 major sons	 Rajkumar	 Swatantrakumar and Santoshkumar with his minor son Satishkumar admitted to the benefits of the partnership. In the course of assessment proceedings for the assessment year 1967 68	 the relevant accounting year of which was the year ending Diwali	 1966	 the Income Tax officer (ITO	 for short) noticed in the books of account of the asssesee five Cash credits of Rs. 9	250 each in the names of five sons of Kanhaiyalal	 as detailed below: Rs. Sailendrakumar 5 yrs. 9	250/ Satishkumar 9 yrs. 9	250/ Sunilkumar 7 yrs. 9	250/ Swatantrakumar 16 yrs. 9	250/ Santoshkumar 18 yrs. 9	250/ 46	250/ The ITo accordingly called upon the assessee to explain the genuineness as well as the source of the cash credits. On being questioned	 Kanhaiyalal the Managing Partner	 disavowed ail knowledge as to the capacity of the creditors to advance the amounts in question. 854 On the contrary	 he admitted that the creditors had no independent source of income of their own. In fact	 he further stated that he could not explain the source of the cash credits. It was contended before the ITo that the creditors having made voluntary disclosures under the Voluntary Disclosure Scheme and the disclosures made by them having been accepted by the Commissioner of Income Tax and tax paid thereon	 the amount of Rs. 46	250 could not be treated as income of the assessee from undisclosed sources. The ITo	 however	 held that the disclosures made under the scheme granted immunity from further taxation only to the declarant	 and not to person to whom the income actually belonged. He further held that the assessee having failed to prove the genuineness and source of the cash credits	 the amount of Rs. 46	250 credited in the books of account of the assessee in the names of the creditors	 who had no income of their own must be treated as the assessee 's income from undisclosed sources. According to him	 such cash credits were treated in their names after making false declarations under the Scheme	 with a view to avoid a higher rate of taxation. He accordingly made an addition of Rs. 46	250 as assessee 's income from undisclosed sources. The Appellate Assistant Commissioner disagreed with the ITO	 holding that when an amount was disclosed by a person under section 24 of the Act	 there was an immunity not only as regards the declarant	 but there was also a finality as to the assessment. In his view	 the entire statement of Kanhaiyalal had to be ignored	 as it was not clear in what capacity the questions were put to him and the answers elicited because any investigation into the source of the deposits was prohibited and illegal under the Act. He accordingly held that the acceptance of the voluntary disclosures made by the creditors in question to the Commissioner and the payment of tax thereon precluded the Department from disputing that the income belonged to the said creditors and as the same income cannot be taxed twice	 once in the hands of the creditors and again in the hands of the assessee	 the order passed by the ITO in that behalf was unsustainable. The Appellate Assistant Commissioner	 therefore	 directed the deletion of Rs. 46	250. The Department went up in appeal before the Appellate Tribunal. The Appellate Tribunal	 however	 disagreed with the Appellate Assistant Commissioner and upheld the decision of the ITo. It was of the opinion that the ITo was justified in treating the cash credits appearing in the books of account of the assessee in the names of 855 the creditors as unexplained cash credits	 since it was found that the A income declared by the creditors did not belong to them	 and there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged. According to the Tribunal the immunity under section 24 of the Act was conferred on the declarant only	 and there was nothing to preclude an investigation into the true nature and source of the credits. The Appellate Tribunal	 after taking into consideration the statement of Kanhaiyalal	 and having regard to the age of the creditors and the fact that none of them had any independent source of income at any time	 held that the ITo was justified in holding that the asssessee failed to discharge the burden of proof under section 68 of the Income Tax Act	 1961 in regard to the nature and source of the cash credits and	 therefore	 it had to be treated as the assessee 's income from undisclosed sources. Thereupon	 the assessee applied to the Appellate Tribunal under section 256 of the Income Tax Act	 1961 to refer the question of law arising out of its order	 to the Madhya Pradesh High Court for its opinion. There being a conflict of opinion between the different High Courts as to the true nature of the immunity granted under section 24 of the Act	 the Appellate Tribunal has made a reference under section 257 of the Income Tax Act	 1961 to this Court	 of the following questions of law	 for its opinion	 namely: 1. Whether on the facts and in the circumstances of the case	 it was open to the Revenue authorities to investigate into the genuineness of the five credits aggregating to Rs. 46	250 and records a finding in regard thereto	 when the Disclosure petitions made by the five creditors under Section 24 of the Finance (No. 	 had been acted upon by the Revenue authorities ? 2. If the answer to the first question is in the negative and in favour of the assessee	 whether the addition of Rs. 46	250 to the income of the assessee as representing its income from undisclosed sources	 for the assessment years 1967 68	 is valid and justified in law ? The main question in controversy lies within a narrow compass. The question	 in fact	 is whether the provisions of section 24 of the Act can be construed as conferring any benefit	 concession or 856 immunity on any person other than the person making the declaration under the provisions of the Act. It may be mentioned that to avoid any room for doubt	 the legislature has introduced section 18 in the Voluntary Disclosures of Income and Wealth Act	 1976 (Act No. 8 of 1976) which specifically provides that save as otherwise provided in the Act	 nothing contained in the Act shall be construed as conferring any benefit	 concession or immunity on any person other than the person making the declaration under the provisions of the Act. The question for consideration is whether the absence of such a provision as is found in Act No. 8 of 1976 leads to the consequence that acceptance of a declaration under section 24 of the Act confers a benefit which is not provided by the Act on a person other than the declarants and takes away the power of the ITO under section 68 of the Income Tax Act	 1961 to make an investigation as to the nature and source of a cash credit appearing in the books of the assesssee to reject the explanation offered by the assessee as unsatisfactory and to treat it as his income from undisclosed sources. Section 24 of the Finance (No. provided for the making of voluntary disclosures in respect of amounts representing income chargeable to tax under the Income Tax Act 1922 or the Income tax Act	 1961	 for any assessment year commencing on or before April 1	 1964. On such disclosure being made under sub section (I) thereof	 in the manner provided by sub section (2) the amount was to be charged to Income tax in accordance with sub section (3) which provided by a legal fiction that income tax shall be charged on the amounts of voluntarily disclosed income at certain specified rates "as if such amount were the total income of the declarant". There was a safeguard provided in sub section (4) that the benefit under the scheme would be available only in respect of the voluntarily disclosed income and not in respect of the amount detected or deemed to have been detected by the ITO before the date of declaration. When the Commissioner of Income Tax passed an order under sub section (4) there was an appeal provided to the Central Board of Revenue under sub section (S) and the Board was empowered under sub section (6) to pass such orders thereon as it deemed fit. There was a finality attached to the order of the Board under sub section (8) In support of the reference	 learned counsel for the assessee has	 in substance	 put forth a three fold contention. It is submitted	 firstly	 that the ITO could not have treated the cash credits standing 857 in the names of the sons of Kanhaiyalal	 the Managing Partner as . the assessee 's income from undisclosed sources	 having regard to the fact that each one of them had made a declaration under sub section (I) and paid tax thereon under sub section (3). The submission is that it is not permissible for the Department to go into the question of the nature and source of the amount so declared in a voluntary disclosure under s.24 of the Act	 and to say that it does not represent the income of the declarant. Secondly	 it is urged that sub section (I) read with sub section (3) of s.24 of the Act has a overriding effect over s.68 of the Income Tax Act	 1961 and	 therefore	 the ITO could not make any investigation as to the nature and source of the cash credits	 and thirdly	 it is submitted that there cannot be double taxation of the same income	 once in the hands of the creditors and again in the hands of the assessee. These submissions proceed on a wrongful assumption that there is a finality attached under sub section (8) to the legal fiction created by sub section (3) for which there is no basis whatever. The contentions cannot	 in our opinion	 prevail. For an appreciations of the contentions raised	 it is necessary to set out the relevant provisions of s.24 of the Act. Sub section (1)	 insofar as relevant reads . (1) Subject to the provisions of this section	 where any person makes	 on or after the 19th day of August	 1965	 and before the 1st day of April	 1966	 a declaration in accordance with sub section (2) in respect of the amount representing income chargeable to tax under the Indian Income tax Act	 1922 (11 of 1922)	 or the Income tax Act	 1961 (43 of 1961)	 for assessment year commencing on or before the 1st day of April	 1964 (a) for which he has failed to furnish a return within the time allowed under section 22 of the Indian Income tax Act	 1922 (11 of 1922)	 or section 139 of the Income tax Act	 1961 (43 of 1961)	 or G (b) which he has failed to disclose in a return of in come filed by him on or before the 19th day of August	 1965	 under the Indian Income Tax Act	 1922 (11 of 1922) or the Income Tax Act	 1961 (43 of 1961)	 or 858 (c) which has escaped assessment by reason of the omission or failure on the part of such person to make a return under either of the said Acts to the Income tax officer or to disclose fully and truly 11 material facts necessary for his assessment. he shall	 notwithstanding anything contained in the said Acts	 be charged income tax in accordance with sub section (3) in respect of the amount so declared or it more than one declaration has been made by a person the aggregate of the amounts declared therein	 as reduced by any amount specified in any order made under sub section (4) or	 if such amount is altered by an order of the Board under sub section (6)	 then such altered amount. . . Sub section (3) containing the legal fiction reads as follows: (3) Income tax shall be charged on the amount of the voluntarily disclosed income (a) where the declarant is a person other than a company	 at the rates specified in paragraph A	 and (b) where the declarant is a company	 at the rates specified in Paragraph F	 of Part I of First Schedule to the Finance Act (X of 1965) as if such amount were the total income of the declarant Sub section (8) on which strong reliance is placed	 runs thus: (8) An order under sub section (6) shall be final and shall not be called in question before any Court of law or any other authority. The crux of the matter is whether the provisions of s.24 of the Act can be construed as conferring any benefit	 concession or immunity on any person other than the person making the declaration under the provisions of the Act. The question is whether the non obstente clause contained in sub section (I) of section 24 of the Act precludes the Department from proceeding against the person to whom the income actually belonged. The contention that there was an immunity not only as regards the declarant	 but there was also a finality as to the assessment under s.24 of the Act stems from a misconception of the nature and scope of the Voluntary Disclosure Scheme. 859 Under sub section (I) of s.24	 a person was required to make a voluntary disclosure in respect of the amount representing the income chargeable to tax under the Indian Income Tax Act	 1922 or the Income Tax Act	 1961 for any assessment year commencing on or before April 1	 1964. Sub section (I) makes it clear that the declarations	 which were expected to be made in the manner provided by sub section (2)	 were with regard to the income which was chargeable to tax under the Income Tax Acts of 1922 or 1961	 but which was not disclosed at the proper time. Neither under the Act of 1922 nor under the Act of 1961	 was a person required to submit a return with regard to the income which was either not earned or deemed to have been earned by him. It	 therefore	 follows that the declarations under sub section (2) of s.24 had to relate to income actually earned by him. The scheme only permitted the bringing forward of income to tax it did not require investigation of the claim of the declarant. If a person made a declaration	 the Commissioner was under an obligation to assess him to tax. In respect of the voluntary disclosures made	 a declarant acquired an immunity from further investigation as to the nature and source of the income. He also acquired certain benefits. One of the distinctive features of the scheme was that tax was chargeable on the whole of the disclosed income taken as a single block at rates prescribed for personal income or for corporate income under the Act	 and not at an ad hoc concessional rate. Further	 facilities were allowed to payment of tax in appropriate instalments extending over a period not exceeding four years	 subject to a down payment of not less than 10% of the tax due and furnishing a security in respect of the balance. Income which had already been detected on the material available prior to the date of disclosure	 was	 however	 to be assessed under the regular provisions of the Income Tax Act and not under the scheme. Any admissions made by a person in the declarations filed by him under the scheme in respect of such income were not to be used in assessing that income under the Income Tax Act. Under the scheme	 the disclosed income was not to be subject to any further proceedings of assessment. The identity of the declarant was not to be revealed and he was also immune from penalty and prosecution for the past concealment of the disclosed income. It is	 therefore	 obvious that the Act granted immunity only to the declarant alone and not to other persons to whom the income really belonged. The scheme of the Act makes it abundantly clear that it was to protect only those who preferred to disclose the income they 860 themselves had earned in the past and which they had failed to disclose at the appropriate time. It is undoubtedly true that the Act was brought on the statute book to unearth the unaccounted money. But there is no warrant for the proposition that by enacting the same	 the legislature intended to permit	 or connive at	 any fraud sought to be committed by making benami declarations. If the contentions were to be accepted	 it would follow that an assessee in the higher income group could	 with immunity	 find out a few near relatives who would oblige him by filing returns under s.24 of the Act disclosing unaccounted income of the assessee as their own and claiming that the said income was kept by them in deposit with the assessee. That takes us to the contention based on the legal fiction contained in sub section (3) of s.24 of the Act and the finality of the assessment	 by virtue of sub section (8) thereof. The legal fiction contained in sub section (3) of s.24 of the Act	 construed in the light of the other provisions; must mean that the income voluntarily disclosed shall be deemed to be the income of the declarant. The words "as if such income were the total income of the declarant" can only mean that even though the income did not actually belong to the declarant lt would be treated to be his income for purposes of payment of income tax under the scheme. If	 therefore	 a person made a false declaration with regard to income not earned by him	 it is difficult to comprehend how the Department could be prevented from proceeding against the person to whom the income actually belonged and during the course of whose assessment the concealed income is detected. It	 therefore	 logically follows that on a disclosure being made	 the amount was not to be charged to income tax in accordance with sub section (3) of s.24 of the Act	 taking the disclosed income as the taxable income of the declarant. The immunity under section 24 of the Act was conferred on the declarant only and there was nothing to preclude an investigation into the true nature and source of the credits. The ITO was	 therefore	 justified in treating the cash credits in the books of account of the assessee in the names of the creditors as unexplained cash credits. The finality under sub section (8) is to the order of the Central Board of Revenue under sub section Under sub section (4) the Commissioner of Income Tax was required	 within thirty days	 if satisfied that the whole or any part of the income declared had been detected or deemed to have been detected by the ITO prior to the 861 date of declaration	 to make an order in writing to that effect and forward a copy thereof to the declarant. Any person who objected to such an order could appeal under sub section (5) to the Central Board of Revenue stating the grounds for such an objection. The Board was empowered to pass such orders as it thought fit under sub section This order of the Board under sub section (6) was final and conclusive by reason of sub section Thus	 the finality under sub section (8) was to the order of the Board under sub section (6) of section 24 and not to the assessment of tax made on the declarations furnished by the creditors under the scheme	 by virtue of the legal fiction contained in sub section (3) of section 24 of the Act. The next question that calls for determination is whether the non obstante clause contained in sub section (1) of section 24 of the Act precludes the Department from proceeding against the person to whom the income actually belonged. Under sub section (1) of section 24 the declaration was required to be made in respect of the amount which represented the income of the declarant. The declaration could not be made in respect of an amount which was not the income of the declarant. If	 therefore	 a person made a false declaration with respect to an amount which was not his income	 but was the income of somebody else	 then there was nothing to prevent an investigation into the true nature and sources of the said amount. There was nothing in section 24 of the Act which prevented the ITO	 if he was not satisfied with the explanation of an assessee about the genuineness or source of an amount found credited in his books	 in spite of its having already been made the subject of a declaration by the creditor and then taxed under the scheme. We find no warrant for the submission that section 24 had an overriding effect over section 68 of the Income Tax Act	 1961	 insofar as the persons other than the declarants were concerned. In our judgment	 the legal fiction created by sub section (3) of section 24 of the Act by virtue of which the amount declared by the declarant was to be charged to income tax "as if such amount were the total income of the declarant" was limited in its scope	 and it cannot be invoked in assessment proceedings relating to any person other than the person making the declaration under the Act so as to rule out the applicability of section 68 of the Income Tax Act	 1961. The last question that remains is whether the same income cannot be taxed twice	 once in the hands of the creditors and again in the hands of the assessee. In a case of this description	 there is 862 no question of double taxation. The situation is of the assessee 's own making in getting false declarations filed in the names of the creditors with a view to avoid higher slab of taxation. Once it was found that the income declared by the creditors did not belong to them	 there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged. It follows that the decisions of the Gujarat High Court in Manilal Gafoorbhai Shah vs Commissioner of Income Tax	 of the Allahabad High Court in Badri Prasad & Sons vs Commissioner of Income Tax	 and Pioneer Trading Syndicate vs Commissioner of Income Tax	 Lucknow and of the Madhya Pradesh High Court in Addl. Commissioner of Income Tax vs Samrathmal Santoshchand which lay down the true scope of the Voluntary Disclosure Scheme under section 24 of the Act must be upheld. The decisions of the Delhi High Court in Rattan Lal & Ors vs Income Tax Officer and Shakuntala Devi & ors. vs C.I.T. and of the Jammu & Kashmir High Court in Mohd. Ahsan Wani vs C.I.T.	 taking a view to the contrary	 are overruled. The Income Tax officer was entitled to determine whether the amount disclosed was or was not the income of the declarant	 while dealing with the case of another assessee under section 68 of the Income Tax Act	 1961. The legal fiction created by sub section (3) of section 24 was restricted to the Voluntary Disclosure Scheme itself. The protection enjoyed by the declarant under that scheme extended only to the amounts so declared being not liable to be added	 in any assessment	 of the declarant. There was no absolute finality attached to the declaration especially when the nature and source of the sum declared was being determined for the purpose of its inclusion in the income of an assessee other than the declarant. There was	 therefore	 nothing which prevented the Income Tax officer from investigating into the nature and source of the sums credited in the books of account of an assessee and reject his explanation to the effect that 863 the sums belonged to the persons who had made declarations about them under section 24 of the Act. Accordingly	 the reference must be answered in favour of the Revenue and against the assessee. Our answer to the first question is that the legal fiction created by sub section (3) of section 24 of the Finance (No.2) Act	 1965 by virtue of which the amounts disclosed by the declarants had to be charged to income tax "as if such amount were the total income of the declarants" was limited in its scope and could not be invoked in the assessment proceedings relating to the assessee in whose books of account the cash credits appear. The answer to the first question is sufficient to dispose of the second. On the construction placed on sub section (3) of section 24 of the Act	 it must also be held that the ITO was justified in treating the cash credits appearing in the books of account of the assessee	 amounting to Rs. 46	250 as the assessee 's income from undisclosed sources	 since the assessee failed to discharge the burden of proof placed upon him under section 68 of the Income Tax Act	 1961. The Commissioner of Income Tax shall be entitled to his costs of the reference.

Summary:
During the course of the assessment proceedings of the assessee firm for the assessment year 1967 68	 the Income Tax officer noticed cash credits of Rs. 9	250 each in the names of five sons of the Managing Partner	 in the books of the assessee. The Income Tax officer found that these creditors	 who were minors	 had no independent source of income. The assessee contended before the ITO that the five creditors had voluntarily disclosed the credits under section 24 of the Finance (No. and that the disclosures were accepted by the Commissioner. The ITO rejected the contention of the assessee and held that the cash credits in question were unexplained cash credits	 that they represented the income of the assessee from undisclosed source	 and accordingly made an addition of Rs. 46	250. The appellate Assistant Commissioner held that the acceptance of the voluntary disclosures under section 24(3) of the Act and the payment of tax thereon precluded the Department from disputing the fact that the income belonged to the creditors	 and	 as the same income could not be taxed twice once in the hands of the creditors and again in the hands of the assessee	 set aside the order of the ITO. The Tribunal disagreed with the Appellate Assistant Commissioner and upheld the order of the ITO. Hence the reference at the instance of the assessee under section 257 of the Income Tax Act	 1961 . Answering the reference against the assessee	 the Court ^ HELD: Per Sen	 J. 1. Section 24 of the Finance (No. cannot be construed as conferring any benefit	 concession or immunity on any person other than the person making the declaration under the provisions of the Act. The scheme of the Act makes it abundantly clear that it was to protect only those who preferred to disclose the income they themselves had earned in The past and which they had failed to disclose at the proper time. The scheme only permitted the bringing 850 forward of income to tax; it did not require investigation of the claim of the declarant. The Act granted immunity only to the declarant and not to other persons to whom the income really belonged. [859 G H	 860 A] 2. The legal fiction created by sub section (3) of section 24 of the Finance (No. by virtue of which the amount declared by the declarant had to be charged to income tax "as if such amount were the total income of the declarant"	 was limited in scope and it cannot be invoked in assessment proceedings relating to any person other than the person making the declaration	 and did not take away the power vested in the ITO under section 68 of the Income Tax Act	 1961 to reject the ' explanation of an assessee for a cash credit on the ground that the explanation was not satisfactory in the case of such other person. [861 F G] 3. The finality under sub section (8) of section 24 of the Act was to the order of the Central Board of Revenue under sub section (6) thereof and not to the assessment of tax made on the basis of a declaration made by the creditors under the scheme. There was	 therefore	 nothing to prevent an investigation into the true nature and source of the cash credits. [861 B	 D] 4. The acceptance of voluntary disclosures under s 24 of the Act and the payment of tax thereon by the creditors could not	 in law	 justify the deletion of the amount of Rs. 46	250 as it represented the assessee 's income from undisclosed sources. In a case of this description	 there was no question of double taxation which was a situation of assessee 's own making in getting false declarations made in the names of the creditors with a view to avoid higher slab of taxation. once it was found that the income declared by the creditors did not belong to them	 there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged. [861 H	 862 A B	 863 C] Manilal Gafoorbhai Shah vs Commissioner of Income Tax	 Gujarat; Badri Prasad & Sons vs Commissioner of Income Tax	 Allahabad; Pioneer Trading Syndicate vs Commissioner of Income Tax	 Lucknow	 Bench Allahabad) and Additional Commissioner of Income Tax vs Samarathmal Santoshchand	 Madhya Pradesh	 approved. Rattan Lal & Ors vs Income Tax officer	 Delhi; Shakuntala Devi & Ors vs C.I.T	 Delhi and Mohd. Ahsan Wani vs C.I.T.	 Jammu & Kashmir	 overruled. The declaration made under sub section (2) of s.24 of the Income Tax Act	 1961 had to relate to income actually earned by the assessee. It did not require any investigation into the correctness of the declarations or any determination of the amounts belonging to the declarant. The mere charge to tax on the amounts under the Voluntary Disclosure Scheme could not have the effect of converting the money from the deductions from the books of the assessee into the income of The declarants if it did not belong to it. It was	 therefore	 open to the Income Tax officer to investigate into the source of the cash credit amounting to Rs. 46	250 standing in the books of the assessee in the names of the sons of the Managing Partner. [859 C D	 860 F G] 851 1. The making of an assessment against a declarant on his disclosure of statement under section 24 of the Finance (No. cannot deprive Income Tax officer of jurisdiction to assess the same receipt in the hands of another person if	 in a properly constituted assessment proceeding under the Income Tax Act	 the receipt can be regarded as the taxable income of such other person. [852 G H	 853 A] 2. The liability imposed under section 24 of the Finance (No. is identifiable with the income tax liability under the Income Tax Act. The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it. Consequently the general principles which apply to assessments made under the Income Tax Act would	 except for provision to the contrary	 be applicable to assessments made under section 24 of the Finance (No. Accordingly when the assessment to income tax is made under the latter enactment	 it will be governed by the general principle that a finding recorded therein governs only the particular person assessed. [852 B D] 3. The finality enacted by sub.s. (8) of section 24 of the Finance (No. attaches to the assessment of the declarant only. It cannot in law operate in favour of or against any other person. The jurisdiction of an Income Tax officer when making an assessment is concerned primarily with the issue whether the receipt under consideration constitutes the income of the assessee before him. Any finding reached by the Income Tax officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person. The only exception of this rule centers on the limited class	 and for the limited purpose	 defined by the Supreme Court in Income Tax Officer	 A Ward	 Sitapur vs Murlidhar Bhagwan Das	 at 346. [852 D F] Ahmed Ibrahim section Dhoraji vs The Commissioner of Wealth Tax Gujarat	 [1981] 3 SCR p. 402 and Income Tax Officer	 A Ward	 Sitapur vs Murlidhar Bhagwan Das	 at 346	 applied.