2007 (2) TMI 183

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....is directed against the order of the Income-tax Appellate Tribunal made in IT(SS)A No. 211/Mds/ 2003, dated January 6, 2004. The facts in brief are: There was a search conducted by the Revenue officials under section 132 of the Income-tax Act, 1961, in the residence as well as in the business premises of the assessee on November 23, 2000, and it was concluded on March 14, 2001, and a block asse....

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.... preferred the above appeal raising the following substantial question of law: "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 introduction of the proviso to section 113 with effect from June 1, 2002?" Heard both sides. With regard to the issue raised, viz., whet....

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....om June 1, 2002, by the Finance Act, 2002. The provisions of section 113 of the Act are as under: '113. Tax in the case of block assessment of search cases.- The total undisclosed income of the block period, determined under section 158BC, shall be chargeable to tax at the rate of sixty per cent.: Provided that the tax chargeable under this section shall be increased by a surcharge, if any, ....

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....relevant to the previous year in which the search was initiated under section 132 or requisition was made under section 132A. This amendment will take effect from June 1, 2002. We have perused section 113 of the Act, especially the proviso added on June 1, 2002, which provides for levy of surcharge. Counsel could not dispute that the same has not been given retrospective effect on the langua....