meaning of good faith,true disclosure and co-operation

[bpagrawal]

Saturday, 12 May 2012meaning of good faith,true disclosure and co-operation
The meaning of the phrase "in good faith" and "true disclosure" has to be construed in a wider amplitude. It is not the disclosure of the amount alone but also the nature of the amount of the concealed income of the assessee. If one claims that this was not a concealed income of the assessee and income of someone else, then it cannot be said to be a true disclosure of concealed income. The truthfulness of the concealment means that this income was the income of the assessee, which he was disclosing. There cannot be any element of chance. The assessee cannot get the benefit of the dictum "Heads I win tails you lose". He cannot speculate. Such speculation cannot be treated to be bona fide or to have been made in good faith and true disclosure nor can it be treated to be a situation within the meaning of Clause (c). In order to get the benefit of the said circular, one has to satisfy all the tests together. If one test fails, the assessee cannot get the benefit of the said circular.

Calcutta High Court
Commissioner Of Income-Tax vs Bimal Kumar Damani on 10 February, 2003
Equivalent citations: (2003) 180 CTR Cal 452, 2003 261 ITR 87 Cal
Author: D Seth
Bench: D Seth, R Sinha
JUDGMENT
http://www.lawweb.in/2012/05/meaning-of-good-faithtrue-disclosure.html