VDIS Declaration Does Not Bar Scrutiny If Higher Income Is Detected: MP HC

Naresh Chandra Agrawal Vs Income Tax Department And Others (Madhya Pradesh High Court) The Madhya Pradesh High Court dismissed a writ petition challenging scrutiny notices issued under Section 143(2) of the Income-tax Act, 1961, and an order passed under Section 144A, holding that income declared under the Voluntary Disclosure of Income Scheme, 1997 (VDIS) does not bar the Income Tax Department from examining whether higher income has escaped assessment. The petitioner, a partnership firm engaged in trading of tractors, motorcycles, and spare parts, had failed to file income-tax returns for ce...