2007 (2) TMI 184

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....ing the search, a block assessment was framed for the block period April 1, 1990, to July 15, 1999, and an order was passed for the said block period on June 19, 2001, levying a surcharge at 17% on the tax payable on the block assessment. Aggrieved by the said order of block assessment, the assessee filed an appeal before the Commissioner of Income-tax (Appeals), who upheld the order of the Assessing Officer levying surcharge by order dated February 26, 2002. The Tribunal, on further appeal by the assessee, held that prior to introduction of the proviso to section 113 with effect from June 1, 2002, whereby it was clarified that surcharge as applicable would be leviable in cases of block assessments, the levy would fail, since the search in ....

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....t, with effect from June 1, 2002, the 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 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, i....