2014 (11) TMI 803

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....ed by the Tribunal. 2. The background facts may be noticed in brief. 2.1 The assessees filed their return of income on 18.08.1997 in response to notice issued u/s 158-BC read with section 158- BD of the Act showing nil income. The Assessing Officer after receipt of the said return issued notices u/s 143(2) and 142(1) of the Act and initiated assessment proceedings. After hearing the parties the Assessing Officer passed an order on 29.09.1997 assessing the income of the assessee as undisclosed income to the tune of Rs. 4,56,454/- and 3,48,316/-. 2.2 Being aggrieved by the order passed by the Assessing Officer, the assessees filed appeal before the Tribunal and the Tribunal after hearing the parties vide order dated 13.09.2001 partly allow....

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....in jewelleries as mentioned in the panchnama dated 09.09.1995 were found and the same was claimed by the assessees. He submitted that after completion of the assessment of Shri Jaisukhlal, notices were issued to the assessees as the jewellery was found to be acquired from undisclosed income and there was an income from the firm of Patira Packaging received by the assessees for which returns were not filed within prescribed time-limit. 5.1 Mr. Desai submitted that the conclusion arrived at by the Tribunal is contrary to the provisions contained in Section 158-BB(1)(c) of the Act. He submitted that in the said provision it is categorically provided that when the date for filing the return has expired but no return of income is filed, the inc....

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....tted any error while coming to the conclusion that the income representing their shares from the partnership firm cannot be treated as undisclosed incomes of the assessees. The Tribunal has considered the provisions of clause (c) of sub section (1) of Section 158-BB. Section 158BB is reproduced hereinbelow:     "Computation of undisclosed income of the block period     158BB.(1) 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 Chapter IV on the basis of evidence found as a result of search or requisition of books of account or documents and such other materials or informatio....

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....or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss computed in accordance with the provisions of Chapter IV without giving effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under subsection (2) of section 32;     (b) of a firm, or its partners, the method of computation of undisclosed income and its allocation to the partners shall be in accordance with the method adopted for determining the assessed income or returned income for each of the previous years falling within the block period;     (c) assessment under section 143 includes determination of income under sub- section (1) or subsection (1B) of section 143. &n....