9911796707
TMI Blog2006 (5) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... aw arises - - - - - Dated:- 16-5-2006 - Judge(s) : ADARSH KUMAR GOEL, RAJESH BINDAL. JUDGMENT This appeal, filed under section 260A of the Income-tax Act, 1961 (for short "the Act"), against the order dated August 22, 2005, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar in M. A. No. 65 (Asr.)/2005 arising out of IT (SS) No. 30/Asr./2003 for block period April 1, 1990 to April 6, 2000 raises the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in confirming the Commissioner of Income-tax (Appeals)' order directing not to levy surcharge on the tax worked out on the undisclosed income, as the case pertains to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellaneous Application No. 65 (Asr.)/2005, inter alia, on the ground that the issue relating to levy of surcharge had not been dealt with in the order. While accepting the plea of the Revenue about the maintainability of the application for rectification under section 254(2) of the Act, on the issue of levy of surcharge, the same was considered on the merits and rejected. While doing so, the Tribunal relied upon a number of earlier orders of the Tribunal on the same issue. The findings to that effect have been recorded in para. 9 of the Tribunal's order, which is extracted below: "9. We have heard both the parties and considered the rival contentions. The learned Commissioner of Income-tax (Appeals) has decided the matter by relying on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edure for completion of block assessments. The purpose of inserting such Chapter was to make expeditious assessment in respect of cases where searches had taken place and to compute the undisclosed income of the block period. This was in addition to the regular assessment provided under normal provisions of the Act. The rate of tax to be levied on the undisclosed income was different from the rate of tax on normal income disclosed in the regular returns. As per the provisions of section 113, as these stood in the statute prior to June 1, 2002, it was not provided that in addition to tax on undisclosed income, surcharge should also be levied. However, the proviso to section 113 was inserted by the Finance Act, 2002 with effect from June 1, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e'. In the present case also search and seizure action was carried out on April 6, 2000, i.e., prior to June 1, 2002. Therefore, the above decision is squarely applicable to the present case. Respectfully, following the same we do not find any justification to interfere with the order of the Commissioner of Income-tax (Appeals). The same is upheld and this ground of appeal is dismissed. In the result, the appeal of the Revenue is dismissed." We have perused the order passed by the Tribunal and section 113 of the Act in which new proviso was inserted with effect from June 1, 2002, by the Finance Act, 2002. The provisions of section 113 of the Act are as under: "113. Tax in the case of block assessment of search cases.- The total undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case was conducted on June 1, 2000, i.e., before the insertion of the proviso in section 113 of the Act, with effect from June 1, 2002. The levy of surcharge envisaged under this proviso will not be attracted in the present case. While holding this in favour of the assessee, the Tribunal has relied upon a series of judgments on the issue taking a view in favour of the assessee as referred to in para. 9 of the Tribunal's order, as extracted above. The Revenue has not been able to point out as to what is the distinction between the present case and the cases which have been relied upon by the Tribunal while deciding the issue in favour of the assessee and if the facts were the same, as to why those decisions were not challenged f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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