TaxTMI 
TaxTMI 
2013 (11) TMI 661
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....8 BD of the Act? 3. Whether the Tribunal was not right in holding that there were adequate materials to justify that there was undisclosed income in the hands of the appellant partner? 2. The issues are common. The Income Tax Appellate Tribunal had also considered the assessees appeals relating to the Block Assessment period 01.04.1989 to 19.01.2000 and passed a common order in respect of the different assessee's herein. 3. It is seen from the facts narrated that on 19.01.2000, there was a search and seizure operation at the residence and the business premises of one P.Subramani and his group concerns including M/s.Sugajothi Tex conducted under Section 132 of the Income Tax Act, 1961. Admittedly, the assessees were the partners in M/s.Sugajothi Tex and they were filing regular returns of income upto the assessment year 1994-95. For the period from 1995-96 to 2000-2001 comprising the Block Period from 01.04.1989 to 19.01.2000, long after the date of search on 19.01.2000 the assessees filed their returns on 05.01.2001. Based on the materials seized, notices under Section 158 BD read with 158 BC of the Income Tax Act, 1961 were issued to the assessees. The assessees' claimed that t....
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.... notice under Section 158 BD of the Act would not in any manner make the return of income as valid for the purposes of taking the jurisdiction out. The Income Tax Appellate Tribunal considered the decision of this court in the case of Assistant Commissioner of Income Tax vs. M/s.A.R.Enterprises in Tax Case (Appeal) No.238 of 2000 dated 08.09.2004 reported in (2005) 274 ITR 110, the decision of the Allahabad High Court reported in 248 ITR 381 [Digvijay Chemicals Ltd., vs. Assistant Commissioner of Income Tax] and Gujarat High Court reported in 251 ITR 608 [Rushil Industries Ltd., vs. Harsh Prakash] and held that Section 158 BD does not require granting of an opportunity before recording prima facie satisfaction that after the search operation there were materials to show the undisclosed income of the assessees. The Tribunal pointed out that the filing of the return by the firm was not of any consequence while considering the question as to whether the income from salary and interest could be treated as disclosed income at the hands of the individual partner. The Tribunal pointed out that on the admitted fact, the assessees had filed the returns only after the search, the undisclosed....
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....son who is assessable under the Act, must file his or her total income during the previous year on or before the due date, for assessment under Section 143 of the Act. Payment of an advanced tax is based on estimated income and hence, it cannot result in the disclosure of the total income assessable and chargeable to tax. Thus, in para 39 of the judgment, the Supreme Court pointed out thus: "Thus, for the purposes of computation of undisclosed income under Chapter XIV-B, an assessee can rebut the Assessing Officer's finding of undisclosed income by showing that such income was disclosed in the return of income filed by him before the commencement of search or the requisition. In other words, when Section 158 BB (3) is read with Section 158B(b), which defines undisclosed income, we reach the conclusion that for income to be considered as disclosed income, the same should have been disclosed in the return filed by the assessee before the search or requisition. In our opinion, on failure to file return of income by the due date under Section 139 of the Act, payment of advance tax per se cannot indicate the intention of an assessee to disclose his income." It rejected the plea of the....
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......." 9. Learned counsel appearing for the assessee submitted that considering the fact that the returns had been filed by the assesee even prior to the initiation of the proceedings under Chapter XIVB, the case of the assessee would not fall for consideration under clause (ca) of Section 158 BB (1) of the Act. 10. We disagree with the contention of the assessee. For, a case of non-filing of return would be one where the due date for filing a return of income has expired, but no return of income has been filed by the assessee. Section 158 BB of the Act states that in such case the undisclosed income has to be computed as given under (c)(A), (c)(B) and (c)(ca). Thus the computation of the undisclosed income of the block period shall be the aggregate of the income could be determined on the basis of the entries as recorded in the books of accounts. The computation of the undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period, computed in accordance with the provisions of the Act. Thus, as far as Clause (ca) is concerned, when the due date for filing of the return of income has expired and the assessee h....