2006 (7) TMI 194

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by P. P. S. Janarthana Raja, J. - This appeal is filed under Section 260A of the Income Tax Act, 1961 by the Revenue, against the order of the Income Tax Appellate Tribunal, Bench 'A', Chennai in I.T.(SS)A No.22(Mds)/2003 dated 28.12.2006, raising the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal was right in holding that the subsi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....9 determining the undisclosed income at Rs.1,67,15,250/-. While completing the assessment, the Assessing Officer made an addition of Rs.67,50,000/- being the difference between the subsidy received amounting to Rs.1,12,50,000/- and the income already offered to tax amounting to Rs.45,00,000/-. This amount of subsidy was not admitted for the purpose of income-tax and hence the Assessing Officer mad....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ht only during the raid and hence the Assessing Officer is justified in treating the same as undisclosed income for the block period.  5. Heard the counsel. In the course of raid, copies of lease agreements relating to lease transactions have been seized. In the letter addressed to the DDIT, the assessee had stated that the subsidy of Rs.1,12,50,000/- was received from IREDA for the supply....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....closed the income for the block period. It is also seen from the records that the impugned amount could not be said to have come into light as a result of search operation. The findings given by the authorities below are that the income by way of subsidy is taxable for the purpose of income-tax in the regular assessment and not in the assessment for the block period and that the assessee had alrea....