TaxTMI 
TaxTMI 
2013 (11) TMI 18
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome-tax Appellate Tribunal was right in law in deleting the addition of Rs. 39,356 made by the Assessing Officer on account of nonfiling of return for the assessment year 1995-96 particularly when there is a specific provision for computation of undisclosed income of the block period in such cases under the provisions of section 158BB(1) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law and on facts in deleting the addition of Rs. 4 lakhs made on account of receipt of the alleged NRI gifts holding the same to be not covered in the definition of undisclosed income as defined in section 158B(b) of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be undisclosed income. The learned Tribunal has also observed that the addition on the ground that the assessee was not maintaining personal books of account is not correct. 3. There is no dispute that the assessee has submitted the balance-sheet before the Assessing Officer and in the balance-sheet the closing balance or cash in hand was disclosed, therefore, the opening balance cannot be regarded to be undisclosed income ; the entries in the balance-sheet have not been disputed by the Assessing Officer. 4. The hon'ble court in the case of CIT v. Shamlal Balram Gurbani [2001] 249 ITR 501 (Bom) has held that the conclusion of the Tribunal that there was no reason for treating the said income as undisclosed income for the purpose of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....However, on appeal, the learned Tribunal has observed that the assessee in the instant case was a regular assessee for income-tax for over 30 years. He was filing his return of income regularly in all the years except where his income did not exceed the maximum amount to chargeable to tax for the assessment year in question, i.e., 1995-96. However, the assessee had received the gift through the bank account either through bank drafts or cheques, which were duly deposited in the Oriental Bank of Commerce, which reflect in the balance-sheet ; the amount whatever was received through gifts by the assessee was transferred to the account of the partnership firm and was credited in the capital account of the assessee on two dates, i.e., Rs. 2,50,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g his return and return of the partnership firm, of which he is a partner, regularly and the learned Assessing Officer has assessed the income of the partnership firm as well as of the assessee and has not doubted any entry therein, therefore, non-filing of the return for the assessment year 1995-96 on the ground that after allowing the deduction under the Act income remains below the taxable limit cannot be treated as undisclosed income for the block period. 10. We find support from the judgments of a Division Bench of the Madhya Pradesh High Court in the case of CIT v. Vimla Khatri [2007] 288 ITR 168 (MP) as well as in the case of CIT v. Smt. Maya Chotrani [2007] 288 ITR 175 (MP), the judgment of this court in the case of M. R. Singhal....