TMI Blog2006 (10) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... nses to the tune of the composite amount of Rs. 3,20,000 for various assessment years 1991-92 to 1995-96, especially when it is an admitted fact that deduction of expenses to the tune of Rs.l,35,000 as claimed for the assessment year 1995-96 has been allowed? (ii) Whether, on the facts and circumstances of the case the learned Income-tax Appellate Tribunal was right in upholding the order of the ACIT wherein the income for the assessment years 1994-95 and 1995-96 were declared to be undisclosed overlooking the provisions of section 139(4)?" The facts relevant for decision of the appeal appearing from the order of the Tribunal are that search and seizure operation was conducted at the premises of the assessee on December 21, 1995. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such expenditure incurred. Major component of the expenses claimed relates to salaries of Rs. 12,000, Rs. 24,000, Rs. 72,000 and Rs. 90,000 for the assessment years 1992-93, 1993-94, 1994-95 and 1995-96, respectively. Even if the details of other expenses like local conveyance, entertainment and miscellaneous expenses were not available, the assessee could have given the name of the employees to whom salary had been paid. No such details have been furnished. Besides, in none of the seized documents, there is any entry in regard to incurring of such expenditure. A copy of the income and expenditure account for the period ending on March 31, 1994, is on record. The same separately shows salary expenses of Rs. 60,000 debited to such account. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al on this issue, we do not find any substantial question of law arises. Re : Q. No. (ii) The finding recorded by the Tribunal on this question is as under: "20. Section 158BB(1) deals with the computation of undisclosed income. The case of the assessee is covered by clause (ca) of section 158BB(1), which provides that where the due date for filing the return of income has expired but no return of income has been filed, income declared in the regular return is to be taken as nil. This means that the entire income computed in the block assessment relating to those assessment years would be treated as undisclosed income. In the case of Sat Pal Singh v. ACIT, supra Income-tax Appellate Tribunal, Chandigarh Bench, had by relying on its ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts and other details were in the possession of the Department following search and seizure operations. However, details of payment of salary and commission, etc. were available in the record of the employer in the form of audit report under section 44AB. Tax was deducted at source and the assessee also paid advance tax and the remaining amount was paid as self-assessment tax. Therefore, such income declared in the belated return was held to be disclosed. These are not the facts of the present case. The assessee had neither recorded the transactions in the regular books of account nor filed the returns before the due dates. No advance tax and self-assessment tax had also been paid. Further, no reason for delay in filing the return of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Smt. Renu, Thanesar, Kurukshetra v. ACIT, Investigation Circle, Ambala. In fact, in the case of CIT v. M. M. George [2002] 254 ITR 45, the hon'ble Kerala High Court has taken the view that for the purpose of block assessment under section 158BC, even the income below the taxable limit of any previous year falling in the block period has to be included in the undisclosed income if such income has not been declared by the assessee in the regular return under section 139(1). This judgment is not applicable to the facts of the present case because the income declared in the returns and finally assessed far exceeds the minimum taxable limit and, therefore, the decision of Income-tax Appellate Tribunal, Chandigarh Bench in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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