2007 (2) TMI 182

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..... T(SS)A No. 4/Mds/ 2004, dated June 19, 2006. The facts in brief are: A search was conducted by the Revenue officials under section 132 of the Income-tax Act, 1961, in the residential and business premises of the assessee on July 9, 1998 and a block assessment was framed for the block period 1988-89 to 1998-99 and from April 1, 1988, to July 9, 1998, and an order was passed for the said block per .....

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..... following substantial questions of law: "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that surcharge is not applicable to block assessments if the search took place prior to the introduction of the proviso to section 113 with effect from June 1, 2002? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the l .....

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..... he said judgment of the Punjab and Haryana High Court in the case cited supra reads as follows: "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 undiscl .....

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..... It is proposed to insert a proviso in the said section to provide that the tax chargeable under that section shall be increased by a surcharge, if any, levied by any Central Act and applicable in the assessment year relevant to the previous year in which the search was initiated under section 132 or requisition was made under section 132A. This amendment will take effect from June 1, 2002. We .....

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..... vying surcharge on the tax payable. Accordingly, we hold that the Tribunal was right in holding that surcharge is not applicable to block assessments in respect of the search conducted prior to the introduction of the proviso to section 113. In view of the same, the second question raised in this appeal need not be gone into. In view of the above, finding no substantial question of law that aris .....

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