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Issues Involved:
The judgment involves the interpretation of the applicability of surcharge on block assessments u/s 113 of the Income-tax Act, 1961 for a period prior to the introduction of a specific proviso on June 1, 2002. Interpretation of Applicability of Surcharge: The case involved a search conducted by Revenue officials u/s 132 of the Income-tax Act, 1961, resulting in a block assessment for the period April 1, 1990, to July 15, 1999. The order passed levied a surcharge at 17% on the tax payable. The Commissioner of Income-tax (Appeals) upheld the surcharge, but the Tribunal ruled that since the search was conducted before June 1, 2002, the surcharge was not imposable. The High Court referred to a similar case decided by the Punjab and Haryana High Court, which held that the proviso to section 113, introducing the surcharge, would not apply if the search was conducted before June 1, 2002. The High Court concurred with this view, stating that the surcharge is not applicable to block assessments conducted before the introduction of the proviso to section 113. Decision and Precedent: The High Court dismissed the appeal, citing the precedent set by the Punjab and Haryana High Court and a previous decision of the same High Court. The Court held that since the search in the present case was conducted prior to the introduction of the proviso to section 113 on June 1, 2002, the surcharge was not applicable. Therefore, the issues raised by the Revenue were decided against them and in favor of the assessee. As a result, the appeal was dismissed, as no substantial question of law arose for consideration.
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