TMI Blog1999 (4) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... . 158BC, the assessee filed the return of income in Form No. 2B on 17th June, 1997. In the course of the assessment proceedings the AO found that the assessee received Rs. 70,000 on the sale of an immovable property. On the transfer of the property the capital gains assessable in the hands of the assessee was determined at Rs. 21,375. There was also a gross salary of Rs. 34,903 received during the previous year relevant for the asst. yr. 1994-95. After allowing the statutory deductions the net income under the head 'salary' was assessed at Rs. 23,270. The AO thus arrived at the total income for the asst. yr. 1994-95 at Rs. 44,650. As no returns had been filed by the assessee prior to the search, the total sum of Rs. 44,650 was treated as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it included in the gross total income. 5. We do not agree with the learned representative that in computing the undisclosed income of the block period exemption is to be allowed for the basic amount. The basic exemption is available only at the time of levying tax at the rates as provided in the Finance Act for the respective assessment year. In respect of undisclosed income of the block period, tax is levied not in accordance with the Finance Act, but as provided under s. 112 of the IT Act. There is no provision either in Chapter XIV or in s. 112 providing for basic exemption and restricting the levy of tax on the excess amount alone. The contention of the learned counsel to allow basic exemption was thus rightly rejected by the AO. As r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te of 60 per cent. As regards the tax rate to be applied on the capital gains, in view of the decision of this Tribunal in the case of Smt. Chandra Balakrishnan in IT(S S)A. No. 26/Coch/96, r/w M.P. No. 119/Coch/1997, dt. 8th Dec, 1997, we hold that tax is leviable at 20 per cent as provided in s. 112(1)(a)(ii) on the capital gains included in the undisclosed income. The AO is, therefore, directed to levy tax at the lower rate of 20 per cent as applicable to capital gains. 7. In this appeal the assessee has also made another request for giving credit for a sum of Rs. 1,362 paid as tax on 20th Oct., 1997. It was pointed out that tax was remitted on the basis of the income returned by the assessee on 17th June, 1997, in Form No. 2B. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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