TMI Blog2007 (11) TMI 301X X X X Extracts X X X X X X X X Extracts X X X X ..... 07 - N. P. GUPTA and MUNISHWAR NATH BHANDARI JJ. K. K. Bissa for the appellant. Ramit Mehta for the respondent. JUDGMENT 1. This appeal has been filed by the Revenue, against the judgment of the Tribunal, dated November 28, 2001. This appeal was admitted, vide order dated December 9, 2002, by framing the following substantial question of law: (i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified while interpreting the provisions of section 158BB(1)(c) of the Act that credit of the income is to be given while computing undisclosed income even if no return is filed under section 139(1) in the cases of below taxable income ?" 2. The facts of the case are that the assessment was made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contending it to be in accordance with the provisions of section 158BB. 6. We may gainfully quote the relevant parts of section 158BB, being sub-section (1) and clauses (c) and (ca) thereof, which read as under : "158BB. (1). The undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed, in accordance with the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence, as reduced by the aggregate of the total income, or, as the case may be, as increased by the ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years determined according to various clauses of this sub-section (1). Thus, the circumstances mentioned in clauses (c) and (ca), as the case may be, are required to be taken into account for the purpose of increasing or reducing the aggregate of the total income as arrived at. In this sequence, a look at clause (c) shows that it comprises of sub-clauses (A) and (B). Sub-clause (A) prescribes the procedure for computation of losses for any previous year falling within the block period while clause (B) provides for computation of the income falling within the block period. Since it is not a case of computation of any losses the relevant and applicable clause would be only sub-clause (B) which provides that the income is to be computed on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount not chargeable to tax for any previous year falling within the block period that income is required to be reduced from out of the aggregate income of the block period arrived at in accordance with the provisions of section 158BB and it cannot be said to be the undisclosed income even if no return is filed within the time prescribed under section 139 as obviously the assessee was not under the obligation to file any return. 9. Our view also finds support from the judgment of the Madhya Pradesh High Court, in CIT v. Asandas Khatri [2006] 283 ITR 346. 10. Accordingly, the question framed is answered in favour of the assessee and against the Revenue. Resultantly, we find no force in the appeal and the same is dismissed. - - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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