1998 (8) TMI 144

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..... the assessee on 24th June, 1997. The assessee filed the return in response to the above notice declaring income at nil. The assessee derives income from interest on deposits. On verification of the records, the AO noticed that the assessee has not filed the return for the asst. yr. 1989-90 though the time for filing the return was expired. He added the income of the assessee for the asst. yr. 1989-90 amounting to Rs. 51,466 as undisclosed income of the assessee. The assessee claimed deduction on account of life insurance premium at Rs. 6,320 but the same was disallowed for want of evidence. Since the assessee failed to file the return under s. 139(1) for the asst. yr. 1989-90, the income for that year was treated as undisclosed income of t .....

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..... ed income given in s. 158BB is an inclusive one and, therefore, the scope of section is very wide. In the instant case of the assessee, the learned Departmental Representative that, though the time for filing the return under s. 139 was over and the assessee was having taxable income and the assessee's income was exceeding the minimum taxable limit, the assessee's income is liable to be treated as nil under s. 158BB. The learned Departmental Representative, relying upon the decision of the Hon'ble Supreme Court in the case of Union of India & Anr. vs. India Fisheries (P) Ltd. (1965) 57 ITR 331 (SC), submitted that this being a special provision, it should prevail upon the other sections and, therefore, the failure of the assessee to file th .....

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..... hough belated along with the return of income for the asst. yr. 1990-91. When the assessee filed this computation, along with it, the proof of payment of advance tax was filed; and at that time the search had not taken place. If the assessee had paid the advance tax and the existence of the income was known to the Revenue, merely because the assessee failed for some reason or other, it cannot be treated as an undisclosed income that came into knowledge of the Department as a result of search and seizure operation that took place at the residential premises of the assessee. 7. In view of the above, I am of the opinion that the addition is liable to be set aside. I do so accordingly. 8. In the result, the appeal by the assessee is allowed.< .....

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