AI Drafter 
TaxTMI 
TaxTMI 
2004 (7) TMI 80
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....hould be taken as nil. III. For that the Income-tax Appellate Tribunal is wrong in observing in para. 13 of the order that the figure of disclosed income for the purpose of undisclosed income under section 158BB should be taken as per books of the assessee when there is no legal requirement for the assessee to file his return of income which is in contravention of section 158BB(1)(c) of the Act." Grounds Nos. 2 and 3: In this case in the block assessment after search and seizure held in the previous year 1995-96 ten (10) earlier previous years from 1986-87 were included as law then prevailed. It was apparent from the books of account that the income for some of the previous years was below the taxable limit. This was sought to be i....
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....ith law. Similar question arose in CIT v. M.M. Thomas [2004] 265 ITR 327 again before the Kerala High Court where it was held that since the search under section 132 of the Income-tax Act, 1961, was conducted on November 22, 1995, that is after the retrospective amendment of sub-clause (B) of clause (c) of sub-section (1) of section 158BB, the income below the taxable limit of a previous year could not be included as undisclosed income of the block period. In this case, search was held on November 3, 1995, which is definitely after July 1, 1995, attracting the application of the amended provision, which is deemed to be there on the statute on the date when searches were held. Therefore, grounds Nos. 2 and 3 are to be answered against the....
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.... cannot at all be believed. Apart from the above contention, Mr. Agarwal had also led us through the assessment order as well as the decision of the Appellate Tribunal and had pointed out the discrepancies and had contended that the decision of the Tribunal cannot be sustained in law, with regard to the finding arrived at on ground No. 1. We have gone through these assessment and the decision of the learned Tribunal. We have also examined the materials placed before us. In fact, we are in agreement with the view taken by the learned Tribunal that the Assessing Officer had confused himself in pointing out the purchase figure and consumption figure as was rightly found by the learned Tribunal. Though the Assessing Officer purported to p....
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....l meaning. The word "assessment" has been defined to mean reassessment as well. Thus we do not get the meaning from the Act. Again we are to fall back on the ordinary grammatical meaning. In order to give the meaning of the word "computation", as intended by the Legislature, we may note the interconnection, interdependence and interlacing of these two expressions for the purpose of the Act in the context these were used. The Act requires an assessment of the income of the assessee. For the purpose of assessment the income is required to be computed. Upon such computation in the process of assessment the income chargeable to tax is determined and assessed to tax. The ordinary meaning of the word "assessment" is: "the action of assessing; ....
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....utation", as given in Shorter Oxford Dictionary, third edition, is: "the action or process of computing; a method of reckoning" and the word "compute" means: "clear or settle (an account) reckon; to determine by calculation; to reckon, count; to take account of". According to Longman Dictionary of Contemporary English, 1982 reprint, the word "compute" means: "to calculate (a result, answer, sum, etc.)" and "computation" means: "(the result of) the act of calculating". Thus, in the context of the Act, computation is a calculation, a method of determination by reckoning through calculation. It involves some methodical process with some amount of approximate mathematical precision based on the calculable data available. When used in the con....
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.... such cases while approaching a finding of fact found by the learned Tribunal. Now, we may examine as to whether the finding of the learned Tribunal can be justified in the context of the meaning of "computation" as discussed above vis-à-vis the order passed by the Commissioner of Income-tax (Appeals). Having gone through the order of the learned Tribunal, we find that the learned Tribunal had recorded its reason and proceeded on the basis of the principle of law enunciated. We do not find that the inference drawn on the established facts are contrary to the principle of law or perverse. This court in appeal can interfere with the findings arrived at by the Tribunal, which is the last court of finding of facts, if perverse or based o....