TaxTMI 
TaxTMI 
2001 (10) TMI 294
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....sp; Nil Assessment year 1991-92: Income from salary Gross Rs. 63,619 12,000 ------------ Rs. 51,619 Rs. 51,619 Income from S.O.P: Annual value u/s 23(2) Rs.....
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....p; Rs. 13,467 ------------ Rs. 68,979 Less: Deductions u/s 8OCCB Rs. 10,000 Deduction u/s 80L Rs. 8,893 u/s P.P.F. Intt. Rs. 13,467 &nb....
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....; Rs. 1,620 Interest income from bank Rs. 246 Income from other sources Rs. 44,500 ------------ Rs. 1,00,558 Less: Deduction u/s 8OCCB Rs. 10,00....
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....sp; ------------ (-)Rs. 5,000 Rs. 50,056 Rs. 30,056 Dividend income: From Indian Co. Rs. 9,167 From UTI Rs. 6,205 Interest income from bank Rs. 1,288 P.P.F. Interest &....
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....nbsp; ------------ Rs. 56,115 Rs. 56,115 Income from SOP Annual value u/s 23(2) Nil Less: Intt. payable to BSHCF Ltd. Rs. 5,000 (-)Rs. 5,000 ------------ Rs.....
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....sp; ------------ Rs. 36,728 Rs. 36,728 -------------- Total Income Rs. 1,31,302 Rs. 131,302 Assessment year 1995-96: Income from salary Rs. 78,178 Less: u/s 16(1) &nb....
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....sp; Rs. 1,14,201 Less: Deduction u/s IO P.P.F. Rs. 33,536 -do- u/s 80L Rs. 10,000 ------------- Rs. 43,536 Rs. 43,536 &....
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....; Rs. 1,17,498 P.P.F. Interest Rs. 43,087 ------------ Rs. 1,61,305 Less: Deduction u/s 10 PPF Rs. 43,807 -do- u/s 80L  ....
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....sp; Rs. 6,912 Interest from bank Rs. 608 P.P.F. Interest Rs. 54,913 ------------ Rs. 1,91,013 Less: Deduction u /s 10 PPF &n....
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....; Rs. 625 Debenture interest Rs. 1,374 Capital gains Rs. 65,604 ------------- Rs. 1,66,247 Less: Deduction u/s 80L &....
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.... -do- 1995-96 Rs. 70,665 1996-97 Rs.1,04,498 1997-98 Rs.1,21,100 Assessment year 1998-99 Rs.1,58,710 &nb....
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.... 5. The assessee has filed cross objections, defending the orders of the first appellate authority. 6. When appeal and cross objections came up for hearing Shri P.C. Mishra, Sr. D.R. advanced arguments on behalf of the revenue. Shri K.N. Prasad Advocate, presented his point of view on behalf of the assessee. We have given our careful considerations to the arguments advanced at the bar and cautiously perused the record. Our findings are detailed in the succeeding sections. 7. Admittedly, the assessee is a professor of Economics at Patna University, Patna, which institution is controlled by the State Government. The claim of the assessee has been that she has been furnishing the details of the salary income in Form No. 16 to her employer. Her employer had deducted income-tax from the salary, to the tune of Rs. 2,501 for the assessment year 1997-98. The University was duly filing annual returns under the provisions of section 206 of the Act, with the concerned Income-tax officer. It had been agitated on her behalf that income from her salary cannot constitute undisclosed income. 8. The provisions of clause (b) of section 158B of the Act defines 'undisclosed income'. For the ....
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....t for determining the undisclosed income stated above. (v) Where the previous year has not ended or the date of filing the return of income under section 139(1) of the Act for any previous year has not expired, the income determined on the basis of transactions recorded on or before the date of search in the books of account or other documents maintained in the normal course relating to such previous year shall be reduced. (vi) However, in a case where undisclosed income has been determined in any earlier block assessment, the same shall be reduced from the total income for determining the undisclosed income. (vii) Where any order of assessment under section 245D of the Act has been passed by the Settlement Commission, the income determined in such order shall be reduced accordingly. (viii) Brought forward losses or unabsorbed depreciation will be allowed to be carried forward for set off in regular assessment and will not be set off against undisclosed income determined in the block period assessment. (ix) The total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss without giving effect to set off of bro....
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.... may charge or deduct income-tax out of the said income. The provisions of sub-section (1) of section 192 of the Act enjoins duty on an employer to deduct tax at the average rate of income-tax computed on the basis of the rates in force on the estimated income of the assessee. It means that an estimate of the income under the head 'salaries' in the financial year in which the payment has been made, will have to be made and on the basis of the estimate, the amount of tax payable, will have to be arrived at. After making the estimate of the income of the employee, the employer would deduct the income-tax from the amount payable to an employee. Failure to deduct income-tax on salaries invites sanctions as contemplated by the provision of sections 201 and 221 of the Act. The employer deducting tax at source from the income under the head salaries is constrained to file returns as contemplated by the provisions of section 206 of the Act. Thus, it is clear that a co-extensive liability, with that of the employee to pay tax, has been created against the employer. 13. It is an admitted case that the assessee furnished the details of her salary income in Form No. 16 to her employer. On t....