JYOTHI KUMARI Vs. ASST. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE three sets of Income Tax Appeals under Section 260 -A of the Income Tax Act, 1961, have their origin to a search that was conducted by the Income Tax Authorities on 18.3.1996 at the residence/business premises No. 568, 10th Cross, Buddha Marga, Siddartha Layout, II Stage, Mysore, of the respondent in I.T.A.No. 257/2001 and the appellant in I.T.A.No. 277/2003.

(2.) TWO of the appeals, ITA Nos. 257/2001 and 258/2001 are by the revenue and respondents in these two appeals are couple. While in ITA No. 257/2001 Purushothamalal is the respondent - assessee and the subject matter relates to his undisclosed income assessed to tax by the Assessing Officer under the provisions of section 158BC of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), but on his demise being now represented by his legal heir - wife Smt. Jyothikumari, wife herself is the respondent - assessee in ITA No. 258/2001 and the subject matter of this appeal is the block assessment order passed in respect of this assessee for the block period 1.4.1985 to 18.3.1996 and in respect of her undisclosed income for this period, but the revenue passing an assessment order in the hands of this assessee more for the purpose of an alternative option as this assessee had claimed the income assessed to tax as her own income which had gone into contribution of acquiring an asset in respect of which contributions had been made by the couple, but the revenue having rejected this version of this assessee and having attributed the entire unexplained, undisclosed investment in the asset as the undisclosed income of the assessee's husband - Purushothamalal for the very block period.

(3.) THE search and the follow -up action having lead to the passing of the assessment order dated 26.5.1997 under the provisions of Section 158BC of the Act, resulting in considerable tax liability on Sri. Purushothamlal, the Principal assessee to an extent of Rs. 32,51,142/ - which is on the premise that the total undisclosed income, unearthed as a result of the search on 18.3.1996 was in a sum of Rs. 54,18,571/ - subjecting this undisclosed income to tax at 60% in terms of provisions of Section 113 of the Income Tax Act, 1961.