TaxTMI 
TaxTMI 
2010 (4) TMI 857
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.... During the course of arguments, the learned counsel for both the parties submit that the following questions would arise in this appeal. Therefore, on the submis- sion we have considered the following substantial questions of law : "1. Whether the Tribunal is justified in law in holding that the income admitted by the appellant in the regular return for the assess- ment years 1993-94 to 1996-97 is to be assessed as undisclosed income for the block period under the facts and circumstances of the case ? 2. Whether, on the facts and in the circumstances of the case, is the Tribunal correct in holding that the income covered by the amount of advance tax paid for the assessment years 1993-94 to 1996-....
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.... years. The Assessing Officer issued a notice to the assessee under section 158BD on April 23, 1999, and treated the entire income for the block assessment year as undisclosed income. Accordingly, an order of assessment was completed, against which the assessee filed an appeal before the Commissioner of Income-tax (Appeals) that the income assessed by the Assessing Officer cannot be treated as undisclosed income on account of the fact that the assessee was very regular in paying the advance tax every year. Accordingly, she requested the Commissioner to allow the appeal. The appeal came to be rejected, against which the asses- see filed an appeal before the Tribunal. The Tribunal also concurred with the views of the Assessing Officer but all....
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.... valid return filed the authorities were justified in initiating proceedings by issuing notice under section 158BD of the Act. Therefore, the questions of law are to be answered against the assessee. 6. Having heard the learned counsel on both sides, we are of the opinion that both the questions have to be answered in favour of the assessee for the following reasons : 7. In order to appreciate the initiation of proceedings by the Assessing Officer under section 158BD, the Assessing Officer should satisfy himself that there is an undisclosed income, if a search had not been conducted, the assessee would not have revealed the income and, therefore, on the premises that there is undisclosed income, a notice under section 15....
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....premises of the assessee herein but the same had been conducted in the premises of Amarnarayan Gupta and others. It is the case of the assessee that even in the search con- ducted, no material concerning the assessee was seized from the house of the Amar Narayana Gupta. Therefore, Mr. Shankar contends that there cannot be any undisclosed income in the present case. In Anil Potdar's case, this court has taken a view that when advance tax has been collected by the firm and bank respectively and even if there is belated return, it can- not be considered as an undisclosed income and if there is delay in filing return, it is for the Revenue to initiate proceedings in accordance with law. 10. As a matter of fact the facts involved in th....