TMI Blog2004 (3) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... sband, Dr. Anil Kumar Goswami, the appellant in I. T. A. No. 42 of 2003, is an ex-Principal of the Cotton College, Guwahati. Both are assessees under the Income-tax Act, 1961(for short "the Act"). Search and seizure was conducted on August 21,1996, under section 132 of the Act at the residence of the appellants. In response to the notice under section 158BC, the appellants filed return disclosing undisclosed income for the block period of April 1, 1986, to August 21, 1996. In the said block period the undisclosed income for the assessment year 1995-96 was also included and the appellants claimed that for the period relevant to the said assessment year 1995-96, comprised in the block period, the Assessing Officer ought to have determined the undisclosed income after allowing deduction for basic exemption, i.e., the maximum amount on which no income-tax was payable for that assessment year. The Appellate Tribunal relying on the provisions contained in section 158BB(1), section 158BA(2), section 113, section 158BC and section 88(1) of the Act did not accept the contentions raised by the appellants and rejected the same. Being aggrieved, the appellant's have preferred the appeals bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (3) for regular assessment stands on a different footing than the exercise undertaken by the Assessing Officer under section 158BB read with section 158BC(b), where the Assessing Officer has to assess only the undisclosed income of the block period on the basis of the evidence found and material available as a result of the search conducted under section 132 of the Act. The regular assessment is to assess the total income or loss of the previous year where a return is filed under section 139 and the Assessing Officer considers it necessary or expedient under section 143(2) to ensure that the assessee had not understated the income or has not computed excessive loss or has not underpaid tax in any manner. The proceedings under the regular assessment and the assessment for the block period stand to operate on different fields. Therefore, the considerations which would be attracted while making the assessment in exercise of the powers under section 143(2) and (3) for the regular assessment would stand on a different footing and will be governed by different provisions of the Act whereas the assessment for the block period as a result of the search and seizure would be governed by d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the apex court. The apex court held that subsection (2) of section 4 in terms provides for payment of tax in advance or deduction of tax at source as provided under the Act. For the deduction of tax at source and payment of tax in advance, the relevant provision in section 190. It provides that notwithstanding that the regular assessment in respect of any income is to be made in a later assessment year, the tax on such income shall be payable by deduction at source or by advance payment, as the case may be, in accordance with the provisions of Chapter XVII. Under section 207 tax is payable in advance in accordance with the provisions of sections 208 to 219 except in the cases of incomes specified therein. Such advance tax is payable during the financial year in accordance with the provisions of section 208. Sections 209 and 210 provides for computation of advance tax and for payment of advance tax by the assessee. Section 211 prescribes the instalments of advance tax and the due dates. The aforesaid provisions therefore, clearly spell out the scheme of the Act which provides for deduction of tax at source and advance payment of tax. On such deduction or deposit of tax credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn of income disclosing his true income. On the basis of the income so disclosed, the assessee is required to make a self-assessment and to compute the tax payable on such income and to pay the same in the manner provided by the Act. Thus the filing of the return and the payment of tax thereon computed at the prescribed rates amounts to an admission of tax liability which the assessee admits to have incurred in accordance with the provisions of the Finance Act and the Income-tax Act. Both the quantum of tax payable and its mode of recovery are authorised by law. The liability to pay income tax chargeable under section 4(1) of the Act thus does not depend on the assessment being made. As soon as the Finance Act prescribes the rate or rates for any assessment year, the liability to pay the tax arises. The assessee is himself required to compute his total income and pay the income-tax thereon which involves a process of self-assessment. Since all this is done under the authority of law, there is no scope for contending that article 265 is violated." From the aforesaid judgment of the apex court it is clear that the Act itself provides for payment of the advance tax and the Act enj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial year and that income is called "current income". Section 209 provides that the computation of the advance tax shall be made by the assessee in the manner provided under section 209. Sub-section (3) of section 210 authorises the Assessing Officer, if he is of opinion that the assessee who has been assessed by way of regular assessment in respect of the total income of any previous year, is liable to pay advance tax, requiring the assessee by order in writing to pay advance tax. Section 211 is in regard to the due dates on which the assessee is required to pay the advance tax in instalments. The scheme of the Act enjoins a duty on the assessee to pay the advance tax by submission of return before the assessing authority. The advance tax is paid on the self-assessment of the income by the assessee which is an admission of the "current income" by the assessee. Clause (d) of sub-section (1) of section 158BB reads as under: "where the previous year has not ended or the date of filing the return of income under sub-section (1) of section 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents mainta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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