2007 (3) TMI 186

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....in the business of manufacture and sale of cloth.  Concededly, even though there was a search under Section 132 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on 22.6.99 in the business and residential premises of the respondent/ assessee, even prior to the date of search, the assessee filed his regular returns for the previous years falling within the block period as detailed hereunder:- Previous year ended/Assessment year Date of filing of return Income admitted (Rs.) 31-03-95/95-96 13-04-1999 23,830 31-03-96/96-97 13-04-1999 14,260 31-03-97/97-98 13-04-1999 55,160 31-03-98/98-99 13-04-1999 65,810 31-03-99/99-2000 11-06-2001 1,33,870 4. However, at the time....

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....ent.  6.  The assessing officer found that for the assessment years 1997-98 and 1998-99, the regular returns were filed beyond the due date specified under Section 139(1) of the Act and hence, the incomes that were admitted for these years were also treated as undisclosed income for the respective years in terms of provisions of Section 158BB(1)(c) of the Act. 7. Consequently, the assessing officer computed the undisclosed income of each year comprised in the block period as under :   Previous year ended 31-03-96/Asst. Year 96-97 Total income returned/assessed Add: Undisclosed income admitted by the assessee Total income including undisclosed income Previous year ended 31-03-97/Asst. Year 97-98 Tota....

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....sted Balance tax payable Add: Interest u/s 158BFA(1) for 7 month @ 2% and for 17 month @ 1.25% Total Tax Payable      Rs. 1,49,382 22,407 1,71,789 20,000 1,51,789   60,555 2,12,344 10. Accordingly, the assessing officer passed the order of demand dated 31.10.2002 under Section 158BC(c) read with 158BD of the Act. 11. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), challenging the finding of the assessing officer that since the regular returns for the assessment years 1997-98 and 1998-99 were filed beyond the due date specified under Section 139(1) of the Act, the income admitted for these years should be treated a....

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....e assessee after the date specified under Sec.139 of the Income Tax Act is not undisclosed income ? (ii)  Whether on the facts and in the circumstances of the case, the Income Tax Tribunal is right in not considering Section 158 BB(1)(c) of the Income Tax Act whereby the regular returns of income filed beyond the due dates specified under Sec.139(1) would be treated as undisclosed income ?" 13. Both the above questions revolve on the only point, whether the income admitted in the belated returns can be treated as an undisclosed income for the block assessment and therefore, they are dealt with jointly. 14. Section 158B(a) defines the block period to mean a period of previous years relevant to the ten assessment years preceding....