9911796707
TMI Blog2007 (3) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... e is the appellant and the relevant block assessment period involved is 1.4.99 to 22.6.99. The respondent/assessee is engaged in the business of manufacture and sale of cloth. Concededly, even though there was a search under Section 132 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on 22.6.99 in the business and residential premises of the respondent/ assessee, even prior to the date of search, the assessee filed his regular returns for the previous years falling within the block period as detailed hereunder:- Previous year ended/Assessment year Date of filing of return Income admitted (Rs.) 31-03-95/95-96 13-04-1999 23,830 31-03-96/96-97 13-04-1999 14,260 31-03-97/97-98 13-04-1999 55,160 31-03-98/98-99 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessing officer proceeded to make the block assessment. 6. The assessing officer found that for the assessment years 1997-98 and 1998-99, the regular returns were filed beyond the due date specified under Section 139(1) of the Act and hence, the incomes that were admitted for these years were also treated as undisclosed income for the respective years in terms of provisions of Section 158BB(1)(c) of the Act. 7. Consequently, the assessing officer computed the undisclosed income of each year comprised in the block period as under : Previous year ended 31-03-96/Asst. Year 96-97 Total income returned/assessed Add: Undisclosed income admitted by the assessee Total income including undisclosed income Previous year ended 31-03-97/Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 407 1,71,789 20,000 1,51,789 60,555 2,12,344 10. Accordingly, the assessing officer passed the order of demand dated 31.10.2002 under Section 158BC(c) read with 158BD of the Act. 11. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), challenging the finding of the assessing officer that since the regular returns for the assessment years 1997-98 and 1998-99 were filed beyond the due date specified under Section 139(1) of the Act, the income admitted for these years should be treated as undisclosed income for the respective years in terms of provisions of Section 158BB(1)(c) of the Act. The respondent/assessee also challenged the levy of surcharge. The Commissioner, by order dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... BB(1)(c) of the Income Tax Act whereby the regular returns of income filed beyond the due dates specified under Sec.139(1) would be treated as undisclosed income ?" 13. Both the above questions revolve on the only point, whether the income admitted in the belated returns can be treated as an undisclosed income for the block assessment and therefore, they are dealt with jointly. 14. Section 158B(a) defines the block period to mean a period of previous years relevant to the ten assessment years preceding the previous year in which the search was conducted and the period upto the date of commencement of such search. Section 158BA(2) declares that the total undisclosed income relating to the block period shall be charged to tax at the rate sp ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
