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TMI Blog1998 (4) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... aised in the case of Shri P.K. Kaliannan (Indl.) in Appeal No. 19/Mad./97:--- (i) The Asstt. ClT erred in taxing at the rate of 60 per cent the aggregate of the share of profits, interest and partnership salary from the firm, M/s. Senthan Kandan Co. (ii) The Asstt. CIT erred in his computation of income without allowing the basic exemption and the exemptions under section 88 of the IT Act. (iii) The Asstt. CIT erred in holding that above sums as undisclosed income without considering the fact that the tax under section 158B is leviable at 60 per cent while in the hands of the firm it would be less. Similar grounds have been raised by the other Appellants. 3. At the time of hearing, the learned counsel for the assessee argued onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng harmonious rule. The learned Departmental Representative emphasised that in the definition of undisclosed income as per section 158, the phrase, 'would not have been disclosed for the purpose of this Act has been used which indicates the future action of the assessee and the words 'other documents or transaction represents only income or property which has not been disclosed....' indicate that the undisclosed income includes all the income which has not been disclosed by the assessee in the return of income. 5. According to the learned Departmental Representative since the assessee has not filed the return of income within the due date prescribed under section 139(1), the whole of income is undisclosed income of the assessee. The time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions which has not been disclosed by the assessee as income. The second situation is where the assessee has not filed the return of income but there is time for filing the return of income and the facts of the case are such that the income such as money, bullion, jewellery, valuable article etc., would not have been disclosed by the assessee for the purpose of this Act. 7. Now, in the case of the assessee, we have to consider whether the case of the assessee falls under the second situation because the assessee has not filed the return of income upto the date of search. Under section 158BB(c), where the due date for filing the return of income has expired but no return of income has been filed, then no deduction will be admissible out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under section 139(4) but it refers to a particular date for filing the return of income which means the due date for filing the return of income as stipulated under section 139(1) only which has expired in the case of the assessee. 8. For the purpose of levy of tax, the provisions of section 158BA(2) provides that the total undisclosed income relating to the Block Period shall be charged to tax, at the rate specified in section 113. Section 113 provides that the total undisclosed income of the Block Period determined under section 159BC shall be chargeable at the rate of 60 per cent. 9. We are of the considered opinion that the basic exemption allowed to an assessee while levying tax for a particular assessment year is not applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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