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TMI Blog2001 (10) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... 2: Income from salary Gross Rs. 63,619 12,000 ------------ Rs. 51,619 Rs. 51,619 Income from S.O.P: Annual value u/s 23(2) Rs. nil Less : Intt. payable to Rs. 5,000 Rs. 5,000 ------------- ------------ BSGCF Ltd. Rs. 5,000 Rs. 46,619 Dividend Income from Indian Co. Rs. 6,621 -do- from UTI Rs. 1,620 Interest income: N.S.C. Intt. on 2,000 of 84-85 Rs. 448 Bank Intt. Rs. 204 ------------ Rs. 55,512 P.P.F. Interest Rs. 13,467 ------------ Rs. 68,979 Less: Deductions u/s 8OCCB Rs. 10,000 Deduction u/s 80L Rs. 8,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s SOL Rs. 7,000 ------------ Rs. 47,044 Rs. 47,044 Total income Rs. 59,716 Rs. 59,716 Assessment year 1994-95 Income from salary Rs. 74,115 Less: u/s 16(1) Rs. 18,000 ------------ Rs. 56,115 Rs. 56,115 Income from SOP Annual value u/s 23(2) Nil Less: Intt. payable to BSHCF Ltd. Rs. 5,000 (-)Rs. 5,000 ------------ Rs. 5,000 Rs. 51,115 Dividend Income: From Indian Co. Rs. 20,058 From UTI Rs. 9,325 Interest from bank Rs. 804 P.P.F. Interest Rs. 26,728 Income from other sources Rs. 60,000 ------------ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------ Rs. 56,807 Rs. 56,807 ------------- Total income Rs. 1,04,498 Rs.1,04,498 Assessment year: 1997-98: Income from salary Rs.1,11,382 Less: u/s 16(1) Rs. 15,000 -------------- Rs. 96,382 Rs. 96,382 Income from S.O.P. Rs. Nil Dividend Income: From Indian Co. Rs. 32,198 From UTI Rs. 6,912 Interest from bank Rs. 608 P.P.F. Interest Rs. 54,913 ------------ Rs. 1,91,013 Less: Deduction u /s 10 PPF Rs. 54,913 Deduction u/s 80L Rs. 15,000 Rs. 69,913 ------------ Total income Rs. 1,21,100 R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 ---------------------------------------------------------------------------- 2. Her total undisclosed income was assessed at Rs. 7,63,170, vide assessment order dated 7-12-1999. 3. An appeal was preferred before the Comm-issioner (Appeals), who granted it, in part, concluding that salary income of the assessee cannot be considered as undisclosed income and its inclusion in undisclosed income for the block period was ordered to be deleted. 4. Aggrieved by the orders of Commissioner (Appeals) the revenue seeks indulgence of the Tribunal claiming that the appellate order is not based on correct proposition of law. 5. The assessee has filed cross objections, defending the orders of the first appellate authority. 6. When appeal and cross objections came up for hearing Shri P.C. Mishra, Sr. D.R. advanced arguments on behalf of the revenue. Shri K.N. Prasad Advocate, presented his point of view on behalf of the assessee. We have given our careful considerations to the arguments advanced at the bar and cautiously perused the record. Our findings are detailed in the succeeding sections. 7. Admittedly, the assessee is a professor of Economics at Patna University, Patna, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or, determination of income has been made under section 143(1A) or 143(B), the same will be reduced for determin ing the undisclosed income. (iii) Where returns of income have been filed under any sub-section of section 139 or in response to notice issued under section 142(1) or section 148 of the Act, but assessments have not been made till the date of search, income disclosed in such return of income shall be reduced for computing the undisclosed income. (iv) In a case where due date for filing a return of income has expired but no return of income has been filed, there will be no reduction of any amount for determining the undisclosed income stated above. (v) Where the previous year has not ended or the date of filing the return of income under section 139(1) of the Act for any previous year has not expired, the income determined on the basis of transactions recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year shall be reduced. (vi) However, in a case where undisclosed income has been determined in any earlier block assessment, the same shall be reduced from the total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of this Act', used at the end of the said clause. The income, which the assessee has already disclosed or would have disclosed, is not to be treated as undisclosed income. The phrase "disclosed for the purpose of this Act' occurring in the provisions of clause (b) of section 158B of the Act signifies only what is required to be disclosed under the Act. What is a disclosure of an income for the purpose of this Act, is a question which confronts us. Simply and logically the answer would be that disclosure of income for the purpose of the Act should be in a manner and to the authority concerned so that it may charge or deduct income-tax out of the said income. The provisions of sub-section (1) of section 192 of the Act enjoins duty on an employer to deduct tax at the average rate of income-tax computed on the basis of the rates in force on the estimated income of the assessee. It means that an estimate of the income under the head 'salaries' in the financial year in which the payment has been made, will have to be made and on the basis of the estimate, the amount of tax payable, will have to be arrived at. After making the estimate of the income of the employee, the employer would d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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