9911796707
TMI Blog1999 (4) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... account of unexplained expenditures. 3. The assessee firm is engaged in the business of construction of roads by obtaining contracts from PWD and Municipal Councils. The premises of the assessee were searched under section 132 on 30th November, 1995 in the course of which certain exercise books and FDRs etc., were found and seized. In response to the notice 158BC, the return of undisclosed income was filed by the assessee declaring income at Rs. 1,45,000 for assessment year 1995-96 and Rs. 2,13,775 for assessment year 1996-97. In the course of assessment proceedings, the assessee was asked to explain the nature and source of expenditure of Rs. 5,000, Rs. 1,10,000 and Rs. 30,930 which were found to have been incurred by the assessee on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment or rate of tax laid down elsewhere in the Act. In other words specially enacted provisions of law find their way in Suppression of general provision. Even though the provisions of section 44AD(1) start with non obstante clause of limited filed. it cannot supercede the presence of non obstante clause in section 158BA(1) which is having wider field encompassing the entire act. Therefore, to say that the special provisions of Chapter XIV-B laying down assessment in search cases are not applicable to the cases wherein Provisions under section 44AD have been invoked Would be travesty of justice." 4. Since the assessee was unable to explain the nature and source of expenses, the addition of Rs. 1,45,930 was made by the Assessing Officer. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 44AD have limited overriding effect i.e., over sections 28 to 43C. We are unable to accept this reasoning because section 158BB in Chapter XIV-B itself provides for computation of total income in accordance with the provisions of Chapter IV which includes section 44AD. Besides that, section 158BH specifically provides application of other provisions of the Act save as otherwise provided in the Chapter. That means that only those provisions of the Act which have been specifically excluded by Chapter XIV-B would not be applicable to the assessment of undisclosed income. Nowhere Chapter XIV-B excludes application of section 44AD. On the contrary, application of such provision has been made clear by the provision of section 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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