2007 (11) TMI 301

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....sions of section 158BB(1)(c) of the Act that credit of the income is to be given while computing undisclosed income even if no return is filed under section 139(1) in the cases of below taxable income ?" 2. The facts of the case are that the assessment was made for the block period 1988-89 to 1999-2000 and that matter was carried up to the Tribunal and the Tribunal, ultimately, while deciding ground No. 8, relating to deletion of addition of Rs. 1,57,467 held that the addition was deleted by the Commissioner of Income-tax (Appeals) holding that the assessee was not having taxable income during the period and was not under the obligation to file a return and so merely on account of non-filing of the return of income the assessee's income ....

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....equisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence, as reduced by the aggregate of the total income, or, as the case may be, as increased by the aggregate of the losses of such previous years, determined,-… (c) where the due date for filing a return of income has expired, but no return of income has been filed,— (A) on the basis of entries as recorded in the books of account and other document maintained in the normal course on or before the date of the search or requisition where such entries result in computation of loss for any previous year falling in the block period ; or (B) on the basis of entries as recorded....

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....k period while clause (B) provides for computation of the income falling within the block period. Since it is not a case of computation of any losses the relevant and applicable clause would be only sub-clause (B) which provides that the income is to be computed on the basis of computation as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such income does not exceed maximum amount not chargeable to tax for any previous year falling within the block period. 8. In our view, this unmistakably shows that where the total income for any previous year falling within the block period as arrived at on the basis of the books of account and other document....