2006 (10) TMI 110 - HC - Income Tax

Summary

Issues involved: Appeal against ITAT order for block assessment period; Deduction of expenses for assessment years 1991-92 to 1995-96; Treatment of income as undisclosed under section 158BB.

Deduction of Expenses (Q. No: i): The Tribunal found that the assessee failed to provide evidence for claimed deductions, specifically regarding salaries and other expenses. The Tribunal upheld the deduction of Rs. 1,35,000 allowed by the Assessing Officer, stating that in the absence of proof, disallowance of claimed expenses was justified. The Court affirmed this finding, concluding that no substantial question of law arose.

Treatment of Income as Undisclosed (Q. No: ii): The Tribunal determined that the income declared beyond the due date for filing returns exceeded the taxable limit, making it undisclosed income under section 158BB. The Tribunal rejected the argument that the return filed under section 139(4) should nullify the consequences of not filing by the due date. It was noted that no advance tax or self-assessment tax had been paid, further supporting the classification of the income as undisclosed. The Court agreed with the Tribunal's view, emphasizing that in such cases, a return filed under section 139(4) cannot be considered as filed before the due date specified under section 139(1). Consequently, the appeal was dismissed.