2006 (3) TMI 97

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.... law: "1. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in negativing the claim of the assessee for deduction under section 80HHC? 2. Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in holding that the benefit of section 80HHC deduction would not be available to a block assessment for the computation of undisclosed income, since it is not the same as a regular assessment? 3. Whether on the facts and in the circumstances of the case, the Tribunal is right in law in dismissing the petitioner's appeal without dealing with the contentions specifically raised by the petitioner dealing with the estimate of income? 4. Wh....

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....bsp;       (2)          (3)      (4)       (5) ------------------------------------------------------------ M/s. Anderton    Granite    17.381    19-7-1996   4,26,469 Ltd. Loability   rough      cubic Co., Lugane,     blocks     metres Switzerland M/s. Indian      Musical    101 sets  15-2-1997  10,63,027 Trading Co.      instru- Ltd., Tokyo,     ment Japan &nb....

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....1, 1987 to January 24, 1998 admitting "nil" income. The Assessing Officer completed the assessment by including the undisclosed income for the assessment year 1996-97 at Rs. 50,405 and for the broken period from April 1, 1997 to January 24, 1998 at Rs. 3,41,140, totalling to Rs. 3,91,545. While completing the assessment, the Assessing Officer disallowed the deduction claimed under section 80HHC of the Act and also estimated the income on the basis of the other assessee doing the same business of exporting musical instruments. Aggrieved by the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), who dismissed the appeal and confirmed the order of the Assessing Officer. Aggrieved by ....

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....with the provisions of the Act, and therefore, the provisions contained in Chapter VI-A of the Act should also be taken into consideration in determining the undisclosed income of the block period. It is true that the Appellate Tribunal decided the matter on the basis of law then existing. The amendment came into force only by the Finance Act, 2002, with retrospective effect from July 1, 1995. Since the amendment has been given retrospective effect, we are of the view, the provision, as amended, would be proper provision for determining the undisclosed income of the block period. We are therefore of the view that the Appellate Tribunal should go into the question whether the assessee is actually eligible to claim deduction under section 80H....