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2014 (9) TMI 690 - HC - Income TaxScope of undisclosed income u/s 158B(b) – Block assessment proceedings - Whether non-filing of the return by the assessee and not disclosing the share income derived / received by the assessee from the partnership M/s. Chandulal Govindlal Choksi can be said to be "undisclosed income" within the meaning thereof in Section 158B(b) under Chapter XIVB of the Act – Held that:- Assessee rightly contended that as such the firm itself filed the return of income disclosing the share income paid to the appellant and therefore, it cannot be said there was a nondisclosure of the said income and therefore, the same cannot be treated as "undisclosed income" within the meaning of Section 158B(b) under Chapter XIVB of the Act – relying upon Assistant Commissioner of Income-tax Versus Enterprises and Commissioner of Income-tax vBR. Shah and others [2013 (1) TMI 345 - SUPREME COURT] - the computation of "undisclosed income" for the purposes of Chapter XIVB of the Act, if any income which is not required to be included in computing the "total income" assessable and chargeable to tax, cannot be declared as "undisclosed income" within the meaning of "undisclosed income" as contained in clause (b) of section 158B of the Act - nondisclosure of the share income received by the assessee as partner of the firm and from the firm and non-filing of the return and not disclosing the aforesaid share income is wrongly treated as "undisclosed income" within the meaning of "undisclosed income" as contained in clause (b) of section 158B of the Act and consequently the assessment proceedings are required to be held bad in law – thus, non-filing of the return and nondisclosure of the share income received by the assessee as a partner of firm M/s. Chandulal Govindlal Choksi from the firm is wrongly treated as "undisclosed income" within the meaning thereof in section 158B(b) of the Act under Chapter XIVB and consequently the block assessment proceedings are non est – Decided in favour of assessee.
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