2009 (2) TMI 66

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....ces of the case and proper interpretation of provisions of section 158BB and Part-II, Part-III of the Form No.28 for Block Assessment, the I.T.A.T. was justified in law in holding that the assessee is eligible to deduction u/s. 80I or 80IA with reference to "total undisclosed income" of the Block period?" 2. The controversy relates to block period commencing from Assessment Year 1986-87 and ending on 06.01.1996. The respondent-assessee, a Limited Company, claimed deduction under Sections 80I or 80IA of the Act in relation to the "total undisclosed income" of the block period. The said claim was rejected by the Assessing Officer and the matter carried before Tribunal. The Tribunal vide its impugned order dated 18.05.1988 allowed the relie....

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....ut no specific exclusion of eligible deduction under Chapter VIA. According to Rules of the interpretation relating to exclusion and inclusion, whatever is not specifically excluded shall be deemed to have been included in taxing statutes. Thus, as far as the deductions under Chapter VIA are concerned, the legal provisions are very clear : that the assessee can not be denied the deduction u/s. 80IA. The view of the A.O. as well as the CIT that deduction u/s.80IA is admissible to the assessee on disallowances and additions made on the ground that these are out of the expenses recorded in the books of account, but the same is not admissible in relation to the undisclosed income declared in Form No.2B as the same is not a part of the report of....

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....t interpretation of the provisions of sections 158BB(1), 158BB(4) and 158BH as applicable to the facts and circumstances of the cases before us, we are of the opinion that the assessee will be eligible for deduction u/s. 80I/80IA in respect of the undisclosed income assessed by the AO under the block period. This issue is, accordingly, adjudicated in favour of the assessee." 3. Heard learned Senior Standing Counsel appearing for the applicant-revenue. Though served, there is no appearance on behalf of the respondent-assessee. 4. On behalf of the revenue it was submitted that the provisions of Section 158BB of the Act have been amended by Finance Act, 2002 with retrospective effect from 01.07.1995 whereby the reference to Chapter IV of....