2012 (9) TMI 1167 - AT - Income Tax

Summary

Issues involved:
The issues involved in this judgment include the challenge to the impugned order of the Ld CIT(A) for the Block Period, calculation of undisclosed income u/s 158BC(c) of the I.T. Act, appeal maintainability based on tax effect, and objections raised by the assessee regarding surcharge and interest u/s 158BFA(1) of the I.T. Act.

Challenge to Impugned Order:
The Revenue filed an appeal against the Ld CIT(A)'s order for the Block Period from 01.4.1989 to 08.12.1999, where the A.O. determined total undisclosed income at Rs. 5,76,440. The A.O. calculated tax at 60% with surcharge at 10%, amounting to Rs. 3,80,450. The Ld CIT(A) deleted the addition made by the A.O. towards unexplained cash, leading to the Revenue's appeal.

Maintainability of Appeal:
The Ld Counsel argued that the appeal by Revenue is not maintainable as the tax effect is less than Rs. 3,00,000, citing Circular no. 3 of the CBDT. Referring to High Court decisions, the appeal was dismissed as the total tax effect was below the threshold, following jurisdictional High Court rulings.

Assessee's Cross Objection - Surcharge and Interest:
The assessee's objections included denial of liability to pay surcharge and interest u/s 158BFA(1) of the I.T. Act. The assessee contended that the levy of surcharge and interest was erroneous and without legal authority. The issue of interest charged by the A.O. was challenged, citing a grace period for filing the return and delay due to non-receipt of seized documents. The matter of interest levy was restored to the A.O. for reconsideration based on legal principles.

Decision and Dismissal:
The appeal by Revenue was dismissed, and the assessee's Cross Objection was partly allowed for statistical purposes. Grounds related to surcharge and interest were considered, with the interest levy issue remanded to the A.O. for fresh consideration. The decision was pronounced on 28th September 2012.