2005 (10) TMI 77

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....1997-98 and 1998-99, even though the assessee not filed the returns of income within the dates but filed after the date of search in the computation of 'undisclosed income' is valid?" The Revenue is the appellant. This appeal relates to the block period from April 1, 1988 to December 9, 1998. There was a search conducted under section 132 of the Income-tax Act on December 9, 1998, resulting in seizure of 724 grams of jewellery valued at Rs. 2.69 lakhs and Kisan Vikas Patras to the value of Rs. 2.31lakhs and other documents. The case of the assessee that while arriving at the gross total income, the gross total income should be reduced by the disclosed income was negatived by the Assessing Officer. The Commissioner of Income-tax (Appeals)....

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....for doing so he will have to show the income on which the advance tax is paid and then claim refund or complete exemption, as the case may be, as permissible under the relevant statute....Disclosure of the self-assessed income by the assessee would only entitle the assessee to claim refund or exemption from tax as the assessee is required to show the income on the basis of which the advance tax is paid or ultimate claim is made. The moment the advance tax is paid the taxable income at that point of time is disclosed to the Revenue by the assessee. It cannot be said by the Revenue that the advance tax paid would or may hot be the tax payable on the basis of the ultimate assessment made and, therefore, it cannot be taken to be a representatio....

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....d by the assessee on payment of advance tax would be an income disclosed to the Revenue and cannot be treated as an income undisclosed for the relevant assessment year. Learned counsel for the Revenue could not point out any provision on the basis of which we can hold that the income disclosed on payment of advance tax cannot be treated as disclosure of income, by virtue of a particular statutory provision under Chapter XIV-B of the Act. For the discussions aforesaid, we answer the question in the negative and hold that the income disclosed on account of payment of the advance tax cannot be held to be undisclosed income for the purposes of block assessment." In view of the above settled law, we are of the considered view that the Appe....