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TMI Blog2010 (11) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 158B(b) of the Income Tax Act, 1961, it prima facie appears that none of the authorities below have recorded any finding as to whether the salary income falls within the ambit of undisclosed income as defined under section 158B(b) of the Income Tax Act, 1961. 3. The appeal relates to block assessment period 1989-90 to 1998-99 and up to 21st October, 1999. Pursuant to search and seizure operation, a notice under section 158BC came to be issued to the respondent assessee calling upon him to file return of income for the block period. 4. In relation to proposed question [A], the Assessing Officer, during the course of assessment proceedings, noticed that the assessee had not filed the return of income for the previous years relevant to the block period and was of the view that in the light of provisions of section 158BB (1)(c) of the Act, the entire income was required to be treated as undisclosed income of the assessee for the block period. In the notes attached to the return, it was submitted by the assessee that he was under the bonafide belief that as tax had been deducted from his salary, no return was required to be filed and accordingly under that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i, 257 ITR 352 (Raj.), (iii) Assistant Commissioner of Income-Tax vs. A.R. Enterprises, 274 ITR 110 (Madras), (iv) Commissioner of Income-Tax vs. N. Vellaiyan, 287 ITR 520 (Madras) and (v) Commissioner of Income-Tax vs. B.K. Agarwal, 227 CTR 173 (Allahabad). Referring to the impugned order of the Tribunal, it was submitted that the Tribunal has given a finding of fact to the effect that the revenue has not disputed the fact that the assessee's salary had been subject matter of deduction of tax at source. In the light of the said finding, it is apparent that the salary income was not undisclosed income of the assessee and as such, there was no question of making addition under section 158BC of the Act or going to section 158B(b) for computation when the amount is not undisclosed income. It was submitted that once the salary income of the block year has been taxed and tax has been deducted at source, there is no question of holding that the said income of the assessee is undisclosed income for taxing it again in the block period after the search. 7. As can be seen from the impugned order of the Tribunal, the Tribunal has noted the findings recorded by Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act 3 [or any expense, deduction or allowance claimed under this Act which is found to be false]. 10. On a plain reading of the aforesaid provision, it is apparent that for the purpose of falling within the ambit of the definition of undisclosed income the following ingredients would be required to be satisfied: The income may include any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions; Such money, bullion, jewellery, valuable article, thing, entry in the books or transaction should represent wholly or partly income or property; Such income or property should not have been disclosed for the purposes of the Act; or The income or property should be such as would not have been disclosed for the purpose of the Act; or Any expense, deduction or allowance claimed under the Act which is found to be false. 11. In the facts of the present case, it is case of the revenue that the sala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the assessee had not filed his return of income for the years under consideration, the total tax payable in respect of the said income had already been paid. The provisions of the Act, both under Chapter XIV-B as well those providing for assessment and reassessment of income escaping assessment have been introduced for the purpose of taxing untaxed income. The Act does not envisage double taxation in respect of the same income. In the present case, the salary income of the assessee has already been brought to tax, albeit by way of tax deducted at source and not by filing a regular return on income. Nonetheless, the income has been subjected to taxation under the provisions of the Act. In the circumstances, in absence of any additional tax being payable on the salary income of the assessee, the question of taxing the said income once again merely because the assessee had failed to file a return in respect of the same would not arise. The said ground of appeal, therefore, does not merit acceptance. 14. In relation to proposed question [B], the Assessing Officer estimated the household expenses of the assessee for the whole of the block period at ₹ 7,20,000/- and therea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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