TaxTMI 
TaxTMI 
2003 (10) TMI 298
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....01) 249 ITR 501 (Bom) and deleting the undisclosed income of Rs.3,06,990 from the block assessment when the facts of the case reported in (2001) 168 CTR (Bom) 506 : (2001) 249 ITR 501 (Bom) are distinct from the facts of the case." 3. Briefly stated, the facts of the case are that the assessee is a partner in the firm M/s Zain Corporation. A search under s. 132 of the IT Act, 1961, was conducted at the residential premises of the assessee as well as business premises of the above firm on 16th March, 1999. Therefore, a notice under s. 158BC was issued to the assessee on 16th June, 1999, in response to which return for the block period, i.e., 1st April, 1988 to 16th March, 1999, was filed on 4th Aug., 1999, declaring nil undisclosed income....
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....ed interest of Rs. 1,93,874 had filed its return on 31st Oct., 1998, within the due date under s. 139(1) and in P&L a/c and statement of income filed with the return of firm, interest paid to the partners were clearly shown. Accordingly, it was submitted by the assessee that once income was disclosed to the Department in any form, the same could not be treated as undisclosed income. Reliance was placed on the decision of the ITAT, Pune Bench in the case of Vidya Madanlal Malani vs. Asstt. CIT (2000) 69 TTJ (Pune) 456 : (2000) 74 ITD 341 (Pune). However, for the detailed reasons given in the assessment order, the AO did not accept the above contention of the assessee and made the impugned addition. During the course of appellate procee....
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.... there was no justification for treating salary and interest income from the firm M/s Zain Corporation as undisclosed income of the assessee. 5. After considering the above submissions of the assessee, the learned CIT(A), vide para 5, has held as under: "I have considered the above submissions and I have carefully perused the assessment order and the relevant records. It is true that the appellant had not filed his return of income for asst. yr. 1998-99 within the time-limit under s. 139(1) and ordinarily the disclosed income for asst. yr. 1998-99 could have been taken as nil under s. 158BB(i)(c), yet such income cannot be taken as undisclosed income of the appellant under s. 158B(b) considering the fact return of the firm from which ....
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....en paid and, in the circumstances, the Tribunal, on facts, came to the conclusion that the findings of the AO regarding undisclosed income ware not based on any material found in the search operations and that he had taken the total income for the earlier assessment years as undisclosed income without any material being found during the search and, in the circumstances, the Tribunal came to the conclusion that there was no reason for treating the said total income as undisclosed income for the purposes of Chapter XIV-B, Under the above circumstances, the Tribunal allowed the appeal. We do not find any reason to interfere with the findings of facts recorded by the Tribunal." Accordingly, relying upon the above decision of Hon'ble Bombay H....