2007 (2) TMI 182

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....ax case appeal is directed against the order of the Income-tax Appellate Tribunal made in IT(SS)A No. 4/Mds/ 2004, dated June 19, 2006. The facts in brief are: A search was conducted by the Revenue officials under section 132 of the Income-tax Act, 1961, in the residential and business premises of the assessee on July 9, 1998 and a block assessment was framed for the block period 1988-89 to 199....

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....d by the said order of the Tribunal, the Revenue has preferred the above appeal raising the following substantial questions of law: "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that surcharge is not applicable to block assessments if the search took place prior to the introduction of the proviso to section 113 with effect from June 1, 2002? 2. Wh....

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.... levy of surcharge envisaged under this proviso will not be attracted. The relevant portion of the said judgment of the Punjab and Haryana High Court in the case cited supra reads as follows: "We have perused the order passed by the Tribunal and section 113 of the Act in which new proviso was inserted with effect from June 1, 2002, by the Finance Act, 2002. The provisions of section 113 of the ....

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....ck period, determined under section 158BC, shall be chargeable to tax at the rate of sixty per cent. It is proposed to insert a proviso in the said section to provide that the tax chargeable under that section shall be increased by a surcharge, if any, levied by any Central Act and applicable in the assessment year relevant to the previous year in which the search was initiated under section 13....