TaxTMI 
TaxTMI 
2002 (3) TMI 203
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....Jinka Plaza at Davangere. The appellant-assessee is regularly assessed to tax and had also filed returns for the year relevant to block period under s. 139 of the Act. The Assessing Officer (AO) noted that the appellant, who has constructed a building called Jinka Plaza, has disclosed the cost of construction wall below the market value of the building. He, therefore, referred the same for valuation to the District Valuation Officer (DVO). The valuation report of the DVO was confronted with the assessee and after considering the objection of the assessee, the AO determined the value of the building at Rs. 33,46,415. The AO further noted that the investment according to the books of accounts, till the end of financial year 1995-96, was Rs. 1....
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....was not justified in levying tax under s. 113 at the rate prescribed therein when the income is determined under s. 158BD. The reference in s. 113 is only in respect of assessment made under s. 158BC only and since in the present case the assessment is made taking recourse to under s. 158BD, tax cannot be charged @ 60 per cent as prescribed in s. 113 of the Act. 4. On behalf of the Revenue the learned CIT(A) has replied as under: (i) There is no necessity to record the reason for initiating action under s. 158BD. Whenever there is such requirement under the Act to record the reasons, the same has been specifically provided in the Act itself like s. 148 etc. For proceeding in a case against the person who is not under search under s. 1....
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....If the assessment is to be made under s. 158BC, the natural corrolary will be to tax him as per s. 113. Any other meaning will simply render the provisions unworkable. When a provision is enacted in a fiscal statute, it has to be interpreted to advance the object of it and not in a way which will defeat the purpose for which it is enacted. 5. We have carefully considered the facts of the case, the material placed before us and the orders of the AO, the valuation report and the decisions relied upon. 6. Firstly we have to consider whether the AO can resort to s. 158BC via s. 158BD in the present case or not. Sec. 158BD gives power to proceed against any person other than one in respect of whom authorisation is issued under s. 132, if t....
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....ll arrive at in light of the material found leading to computation of undisclosed income. The word 'undisclosed income' has been defined in s. 158B(b) of the Act which read as under: "undisclosed income includes any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, valuable article, thing, entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act" Sec. 158BB prescribes the manner of computation of undisclosed income. The section states that undisclosed income of th....
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....oing this exercise in regular assessment. However, at any rate the action is not permissible under s. 158BC in taxing the difference in value as undisclosed income. The decisions relied upon by the learned authorised representative are also supporting the case of the assessee. Similar view has also been held by recent decision of Tribunal, Chennai in case of P.K. Ganeshan vs. Dy. CIT (2002) 80 ITD 429 (Chennai). The Hon'ble Tribunal, Chennai noted as under: "The undisclosed income of the block period has been defined as the aggregate of the total income of the previous years falling within the block period computed in accordance with the provisions of Chapter IV and on the basis of evidence found as a result of search. It is, therefore, ....