2013 (1) TMI 154

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....lly correct in directing the A.O. to allow deductions claimed by the assessee under Chapter IV and VI-A of the Income tax Act, 1961 which were allowed in regular assessment for the respective assessment years, while computing the undisclosed income under section 158BB(1) for the Block period 1.4.1985 to 14.11.1995? (2)  Whether on the facts and in the circumstances of the case, the Tribunal is justified in holding that the income which was duly disclosed and considered in the original assessment proceedings, could not form part of undisclosed income as defined in sub-clause (b) of Section 158 B of the Income Tax Act, 1961? (3)  Whether on the facts and in the circumstances of the case the Tribunal is right in law in deleting....

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....ived a sum of Rs. 1,50,500/- on account of retirement of being partner in the firm, M/s Sarin Chemical Laboratory, Agra. The amount was received during the previous year relevant to assessment year 1993-94 which also form part of the block period. The amount was subjected to tax. 3. The assessee feeling aggrieved filed an appeal before the Tribunal. The Tribunal by the impugned order had held that deduction under Chapter VI-A of the Act was admissible. It had relied upon letter No. F.NO. 414/75/99/IT-(INV-I) dated 27th August, 1999 issued by Sri Davinder Gupta. OSD (INV-I), Ministry of Finance, Department of Revenue, Central Board of Direct Taxes wherein it had been stated that the issue regarding allowability of deduction under Chapter ....

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....er section 32(2) of the Act. 6. We may mention here that earlier total income or loss was computed in accordance with Chapter IV of the Act. However, the word 'Chapter IV' was substituted by the word 'the Act' by Finance Act, 2002 with effect from 1st July, 1995 and, therefore, while computing the undisclosed income or loss deduction under Chapter VI-A is admissible. In view of the clear statutory provision, we are of the considered opinion that the Tribunal had rightly held that the deduction under Chapter VI-A of the Act has to be given while computing total income or loss. 7. So far as the question regarding taxability of the sum of Rs. 1,50,500/- which was received by the assessee on his retirement from the Firm, M/s Sarin Chemica....