Voluntary Disclosure Exempts Assessee From Tax Notices

The Supreme Court has held that once an income-tax assessee is granted a certificate under the Kar Vivad Samadhan (Voluntary Disclosure of Incomes) Scheme of 1998, he cannot be issued further notice except for the reason that his declaration is false. Such notices issued to a woman for three assessment years were quashed by the Supreme Court.

The government had launched the scheme to collect revenue through direct and indirect taxes by avoiding litigation. It was intended to "declog" the system of litigation. Under the VDIS, the assessees were entitled to declare their income and get a certificate from the designated authority after the determination of the payment of amounts in full and final settlement of dues.

Allowing the appeal of the assessee (Sushila Rani vs commissioner of income-tax), the Bench, comprising Justice S Rajendra Babu and Justice Ruma Pal, said in its judgment that after the issuance of the certificate, the determination of the sum payable was absolutely conclusive. The matter could not be reopened thereafter