Reopening on the basis of non payment of tax on income declared for earlier A.Y. not valid

Assessing Officer reopened the assessment of A.Y. 1997-98 on the basis of finding that the assessee had not paid tax on the income declared under VDIS, 97 and made the addition of income declared year-wise under VDIS as unexplained investment. It was held that the addition was not justified as the alleged investments were not made in the immediate preceding financial year to the assessment year under consideration.

A reading of VDIS declarations clearly show that no income pertaining to the impugned assessment y

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