TMI Blog1997 (5) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration. On the other hand, the ld. departmental representative submitted that the return of income for that year was not filed in time and so the income declared in the return was correctly treated as undisclosed income. 2. We have carefully considered the rival submissions. Sub-section (6) of section 158B defines 'undisclosed income'. It essentially includes income 'which has not been or would not have been disclosed for the purposes of this Act'. In the instant case, assessee has filed acknowledgement of filing the return of income for the assessment year 1992-93. By the return so filed, assessee showed total income of Rs. 64,636 and claimed refund of tax of Rs. 1,455 and in the covering letter he mentioned the reason for not filing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that legislative intention can be seen from the Explanation of section 158BB of the Act wherein it was specifically mentioned that while determining the income of the Block period in accordance with Chapter IV, set off of brought forward losses under Chapter VI should not be allowed. He contends that no such restriction is imposed either in the Explanation to section 158BB of the act or other provisions of Chapter XIV-B vis-a-vis the deductions permissible under Chapter VI-A. On the other hand, ld. departmental representative submitted that the income of the block period has to be computed as per section 158BB(1) of the Act which specifically provides that the total income shall be computed in accordance with Chapter IV and, hence, no other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in the block assessment. Therefore, the total income or total losses of each previous year shall for the purpose of aggregation be taken as the total income or total losses without giving effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under section 32. In other words, where in the regular assessment proceedings set off of loss or unabsorbed depreciation has been allowed in the regular assessment proceedings, the same shall be ignored for determining the undisclosed income for the block period." As could be seen from the CBDT's circular, the explanation clarifies that only in the regular assessment proceedings carry forward and set off of losses should be allowed and the same should be ignored ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter are not specific. To put it otherwise, in view of the plain language of section 158BB(1) the other provisions of this Act shall not apply for the purpose of computation of undisclosed income. In fact, provisions of section 158BH, to our mind, are meant to give the Assessing Officer sufficient powers to recover the tax levied under this special procedure after the assessment is made under this Chapter. At any rate, the deductions claimed under Chapter VI-A cannot be allowed to an assessee while computing the income of the block period. 5. Ground Nos. 4 and 5 relate to the claim of rebate under section 88 of the Income-tax Act. Ld. counsel for the assessee contended that the restriction, if any, is only with reference to the computation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaining to the determination of the tax in certain special case, wherever the Legislature intended to give or take away a benefit, such as deduction under Chapter VI-A or section, 88, the same was provided for and in the absence of any specific clause, the plain provisions of section 113 do not leave any room of doubt as to the chargeability @ 60% without any rebate from the tax so payable. For example, under section 112(2) of the Act, it is provided that if the gross total income of an assessee includes the income from sale of long-term capital assets, deduction under Chapter VI-A, should be allowed on the total income after excluding the income from long-term capital assets. Sub-clause (3) thereof states that rebate under section 88 sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
