TMI Blog2013 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ilities during the year ; if the closing balance or cash in hand is disclosed income, the opening balance cannot be regarded to be undisclosed income – Reliance has been placed on the judgment in the case of CIT v. Shamlal Balram Gurbani [2000 (2) TMI 37 - BOMBAY High Court] – Decided against the Revenue. Non-filing of the return on the ground that the total income of the assessee remains below the taxable limit after allowing the deduction available under the law be the ground to hold the income to be undisclosed one – Held that:- Respondent-assessee was filing his return and return of the partnership firm, of which he is a partner, regularly and the learned Assessing Officer has assessed the income of the partnership firm as well as of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count of receipt of the alleged NRI gifts holding the same to be not covered in the definition of undisclosed income as defined in section 158B(b) of the Incometax Act, 1961, particularly when the assessee has not filed the return of his income for the previous year relevant to the assessment year in which the alleged NRI gifts were received ?" Question No. 1 2. The brief facts of the present case, for the purpose of this question of law, inter alia, are that a search was conducted at the residential premises of the assessee on November 23, 1995, under section 132 of the Income-tax Act, 1961 (for brevity "the Act") ; certain incriminating documents were found and seized ; a cash amounting to Rs. 63,625 was found out of which an amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 501 (Bom) has held that the conclusion of the Tribunal that there was no reason for treating the said income as undisclosed income for the purpose of block assessment was based on facts, therefore, no substantial question of law arose. 5. Therefore, question of law No. 1 is answered against the Revenueappellant and in favour of the assessee-respondent. Question No. 2 6. The brief facts of the present case for the purpose of this question, inter alia, are that the Assessing Officer has noted that the assessee has received NRI gifts from the following persons : Date Name of donor Amount 29-6-1994 Sh. Amrik Singh S/o Waryam Singh R/o Dubai 50,000 30-6-1994 Sh. K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he balance-sheet ; the amount whatever was received through gifts by the assessee was transferred to the account of the partnership firm and was credited in the capital account of the assessee on two dates, i.e., Rs. 2,50,000 on July 5, 1994, and Rs. 1,50,000 on July 28, 1994 ; partnership firm and the assessee are assessed by the Assistant Commissioner of Income-tax, Inv. Circle, Patiala, which is apparent from the copy of the assessment order of the partnership firm filed before the Tribunal ; the books of account for all the years in the block period are seized and are with the Department ; merely that the assessee has not filed return in respect of one assessment year in which his income did not exceed the maximum amount not liable to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Madhya Pradesh High Court in the case of CIT v. Vimla Khatri [2007] 288 ITR 168 (MP) as well as in the case of CIT v. Smt. Maya Chotrani [2007] 288 ITR 175 (MP), the judgment of this court in the case of M. R. Singhal v. Asst. CIT [2007] 290 ITR 162 (P H) and the judgment of the Bombay High Court in the case of CIT v. Shamlal Balram Gurbani [2001] 249 ITR 501 (Bom). 11. This is no more res integra that non-filing of the return on the ground that the total income of the assessee remains below the taxable limit after allowing the deduction available under the law cannot be a good ground to hold the income as undisclosed income while making the block assessment. 12. In view of the above, question No. 2 also stands answered against the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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