1. S. A. NUSRAT, J.-The petitioner is a partnership firm registered under section 26-A for the purposes of Income-tax Act. By an amendment made in the Income tax Act in 1976, a new section 3-C was introduced together with Fifth Schedule (hereinafter referred to as the Schedule) making provision for declaration of undisclosed income by a person in respect of his all income, profits and gains of any previous year or years ending before the 1st day for July, 1975. The undisclosed income was thus to cover the period up to the assessment year 1975-76, and tax on such declared income was to be paid at 30 %. Rule 3 of the Schedule laid down that save as provided in sub rule (2), which provided for payment of tax in case the undisclosed income was in the form of assets other than cash, the income-tax of undisclosed income was to be paid before making a declaration, and the declaration was to be accompanied by proof in respect thereof. Rule 7 of the Schedule authorised the Central Board of Revenue to make rules and issue necessary orders and directions for giving effect to the provisions of the Schedule or concerned matters connected therewith for which no provision or no sufficient provision existed in the Schedule. In exercise of powers confer--red by rule 7 of the Schedule the Central Board of Revenue framed rules called the Income-tax (Declaration of Undisclosed Income) Rules, 1976, by a Circular C. No. 63(211)-II-IV/76 dated 14th July, 1976 for the imple--mentation of the provisions of section 3-C of the Schedule.
2. "Definition.- For the purposes of this. Schedule and section 3-C, undisclosed income of a person means all income, profits and gains of any previous year or years ending before the first day of July, 1975, which were chargeable to but were not , o charged."
3. Rule 3 of the Income-tax (Declaration of Undisclosed Income) Rules, 1976 defines that "income charged to tax" should be the income-
(a) declared in any return of income furnished under section 22 or section 34 of the Act, where such income has not been assessed to tax under section 23 or section 23-B of the Act ; or
(b) assessed to tax under section 23 or section 23-B of the Act and, where such assessment has been made subject of appeal or revision, as enhanced or reduced, as the case may be, by the Appellate Assistant Commissioner, the Appellate Tribunal, or the Commissioner."
4. The meaning of the words 'income charged' and 'income chargeable' were further explained by the Board of Revenue in paras. 2 and 3 of the Circular as under :- "2. According to 'the definition given in rule 1 of the Fifth Schedule undisclosed income of a person means income, profits and gains of any previous year or years ending before the 1st day of July, 1975, which were chargeable to tax but were not so charged. In plain language undisclosed income constitutes such income as was liable to income-tax in any year up to assessment year 1975-76 which was not assessed to tax for that year.
3. Where a person has been assessed to incomes-tax in respect of the year.For which he makes declaration of undisclosed income the income chargeable for that year would be the 'income' assessed plus an undisclosed income and the income charged would be the income assessed."
5. A plain reading of rule 3 of the Circular reproduced hereinabove makes it abundantly clear that after an assessm ent was finalised the income of that year plus the undisclosed income was to constitute the income chargeable for that year. The very scheme of calling for declaration of undisclosed income in respect of any previous year or years ending before the 1st day of July, 1975, makes it plain that income-tax assessments of all the previous years were not to be reopened for the purpose of declarations and income declared was t be in addition to the income already assessed. It is part of the same logic that all pending appeals against orders of assessment which were filed by the assessee or by the Department, except on points of law, were to be withdrawn with a view to give finality to the assessments which stood finalised before the filing of declarations.
6. For the reasons mentioned hereinabove we find no substance in this petition which is dismissed in limine.