9911796707
TMI Blog2001 (12) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... f income? The assessee is an individual deriving income from various business activities including a grocery shop, plying of lorries on hire and also income from agricultural properties. The Department conducted a search under section 132 of the Income-tax Act in the residential premises of the assessee on November 22, 1995. In response to a notice issued under section 158BC, the assessee filed a return showing undisclosed income of Rs.88,500 for the block period from April 1, 1985 to November 22, 1995. The Assessing Officer completed the assessment, determining the total undisclosed income of the block period at Rs.7,22,232. As the assessee had not previously paid tax, no deduction was allowed from the income of the assessee. Aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... House property income 5,000.00 Business income and other sources for shortage in cash 86,157.00 flow ----------- 91,157.00 Less : Returned income 22,000.00 Total undisclosed income ----------- 69,157.00 Assessment year 1991-92: House property income 5,000.00 Business income 62,500.00 ----------- 67,500.00 Less: Returned income 62,500.00 Undisclosed income ----------- 5,000.00 Assessment year 1992-93: House property income 5,000.00 Business income 50,000.00 ----------- 55,000.00 Less: Returned income 50,000.00 Undisclosed income ----------- 5,000.00 Assessment year 1993-94: ----------- House property income 5,000.00 Business income 50,000.00 Undisclosed income ----------- 55,000.00 Assessment year 1994-95: House property income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with special procedure for assessment of search cases. The block period was the period comprised in the previous years relevant to ten assessment years preceding the previous year in which the search was conducted. Section 158B(b) of the Act defines "undisclosed income", which says thus: "undisclosed income" includes 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, where such money, bullion, jewellery, valuable article, thing, entry 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". Assessment regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of income has expired but no return of income has been filed, as nil; (d) where the previous year has not ended or the date of filing the return of income under sub-section (1) of section 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition relating to such previous years; (e) where any order of settlement has been made under sub-section (4) of section 245D, on the basis of such order; (f) where an assessment of undisclosed income had been made earlier under clause (c) of section 158BC, on the basis of such assessment." The contention of learned counsel for the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year which has not ended or for which the date of filing of the return under section 139(1) has not expired and that you are in a position to prove to the satisfaction of the Assessing Officer that such income or the transactions relating to such income have been recorded in the books of account and documents maintained in the normal course, such income is to be indicated against that previous year. For any year, if the return has not been furnished for the reason that the taxable income was not above the maximum amount not chargeable to tax, the total income is to be mentioned against that previous year." According to us, the note does not state as contended by learned counsel for the assessee. As a matter of fact, the note specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X
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