1999 (4) TMI 143 - AT - Income Tax

Summary

Issues Involved:
1. Whether the salary income for assessment years 1987-88 to 1992-93 can be treated as undisclosed income.
2. Whether deductions u/s 80-C and rebate u/s 88 should be allowed.
3. Whether the appellant should be permitted to produce salary certificates for assessment years 1987-88 to 1991-92 and get credit for tax deducted at source.

Summary:

Issue 1: Treatment of Salary Income as Undisclosed Income
The assessee's salary income for the assessment years 1987-88 to 1992-93 was treated as undisclosed income by the Assessing Officer (AO) under section 158BC of the Income-tax Act, 1961. The AO noted that the assessee had not filed income-tax returns for these years, despite the salary being assessable. The assessee argued that the salary received from the Reserve Bank of India (RBI) had tax deducted at source (TDS) and thus should not be considered undisclosed income. The Tribunal held that the salary income disclosed by the employer (RBI) in its return u/s 206 constitutes a disclosure for the purposes of the Act. Therefore, treating the salary income as undisclosed was unjustified, and the AO's narrow interpretation of "undisclosed income" was incorrect. The Tribunal concluded that there was no justification for treating the salary income for the block period 1987-88 to 1992-93 as undisclosed income.

Issue 2: Deductions u/s 80-C and Rebate u/s 88
The assessee contended that the AO was not justified in disallowing deductions u/s 80-C and rebate u/s 88 and in refusing to grant adjustment of TDS for the assessment year 1992-93. However, in light of the Tribunal's finding on the primary issue, this ground became infructuous and was dismissed without delving into the merits.

Issue 3: Production of Salary Certificates and Credit for TDS
The assessee requested permission to produce salary certificates for the assessment years 1987-88 to 1991-92 from RBI and sought credit for TDS based on these certificates. Given the Tribunal's decision on the primary issue, this ground also became infructuous and was dismissed.

General Ground:
The appellant's general ground to add, alter, or substitute any grounds at the time of hearing was noted as general in nature and required no comments.

Conclusion:
The appeal was allowed in part, with the Tribunal ruling in favor of the assessee on the primary issue of treating salary income as undisclosed income.