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TMI Blog2006 (4) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... aried income to the undisclosed income specified by the assessee in the return for the block period even when the appellant had in the past disclosed regularly his salaried income and also deducted the tax at source as and when the income was found taxable?" 2. The assessee is an individual in the service of M/s Vikram Cement, which is a unit of the Company known as Grasim Industries Limited. The appellant is getting a monthly salary from the said Company and during the period his income from salary had exceeded the non-taxable limits, tax was deducted at source by his employer. While the assessee was living jointly with his brother Dr. R. Lahoti, a search under the provisions of Section 132 of the Income Tax Act was conducted in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Tribunal that the salary income stood already disclosed and, therefore, ought to have been deducted from the total and could not have been subjected to any tax. The Tribunal however, did not accept the contention and upheld the decision of the Assessing Officer. It is in this context that the present appeal has been filed, which has been admitted on the question hereinabove stated. 5. Learned Sr. Counsel for the appellant submits that once it is demonstrated that in respect of the salary income during the financial year in which it exceeded the taxable limits the tax was deducted at source, then merely because the employer, according to the Department, failed in discharging his duty by apprising the Department by submission of inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r some years and for certain period, it is taxable as per the books of account, the liability would be fixed accordingly. The relevant portion in the report reads as under (Page317): "It is pertinent to state here that the aforesaid provision came on the statute book of Finance Act, 2002, with effect from July 1, 1995. By virtue of this amendment, much confusion which had remained earlier really got cleared and the picture was frescoed without any kind of haze. If the provision which is plain and unambiguous is interpreted, it can be stated that once the books of account disclosed that the income of the assessee is below the taxable limit for some years and or certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the said period cannot be treated as undisclosed. We may also refer to a recent judgment of this Court in I.T.A No. 29/2002 Dr. Brijesh Lahoti v. Commissioner of Income Tax [2006] 282 ITR 349 in which this Court has observed in paragraph 9 and paragraph 10 as extracted hereinbelow (Page354) : "Mr. Chaphekar, learned senior counsel appearing for appellant, submitted that there may be cases outside sub-section (3) of Section 158 BA of the Act where it can be held that income of the assessee has been disclosed. In fact, he relied on the Division bench judgment of the Madras High Court in the case of A.R. Enterprises [2005] 274 ITR 110 in support of his submission in which payment of advance tax before the date of search, even in a ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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