9911796707
TMI Blog2009 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... quired to consider the scope of Section 158BB(4) of Chapter XIV-B of the Income Tax Act, 1961 (for short, 1961 Act). We quote hereinbelow Section 158BB, which refers to 'Computation of undisclosed income of a block period': "158BB. (1) The undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed, in accordance with the provisions of Chapter IV, on the basis of evidence found as a result of search or requisition of books of account or documents and such other materials or information as are available with Assessing Officer, as reduced by the aggregate of the total income, or as the case may be, as increased by the aggregate of the losses of such previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 32; (b) xxx xxx xxx (c) xxx xxx xxx (2) (3) xxx xxx (4) For the purpose of assessment under this Chapter, losses brought forward from the previous year under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32 shall not be set off against the undisclosed income determined in the block assessment under this Chapter, but may be carried forward for being set off in the regular assessments." In these Civil Appeals, we are concerned with the block period commencing from 1.4.1986 to 11.10.1996, when the search took place. It is the case of the appellants-assessee that there is a conceptual difference between current losses and carried forward losses. Similarly, assessee contends that there a concep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious years and the period upto the date of the search. Section 158BB provides for aggregation of income/loss of each previous year comprised in the block period. The block period assessment under Chapter XIV-B is in addition to regular assessment. Analysing Section 158BB(4) read with Explanation (a) thereto, one finds that only brought forward losses of the past years under Chapter VI and unabsorbed depreciation under Section 32(2) are to be excluded while aggregating the total income or loss of each previous year in the block period but set off of the loss suffered in any of the previous year in the block period against the income assessed in other previous years in the block period is not prohibited. In our view, the Settlement Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
