RAM DEVI Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal by assessed against the order of assessing officer passed under section 158BC for the block period relevant to assessment year 1987 -88 to the date of search, i.e., 16 -8 -1996.

(2.) THE search and seizure operation under section 132(1) was conducted on assessed on 16 -8 -1996, which was concluded on 3 -9 -1996. Notice under section 158BC of the Income Tax Act was issued on 9 -1 -1997, requiring the assessed to file the return of income within a period of 16 days from the date of notice. However, the return for the block period was filed on 27 -8 -1997. Thereafter, detailed questionnaire was issued and the assessed was required to explain the nature of documents found during the course of search and was also required to file details and Explanation in regard to evidences filed during the course of search. The details were filed by the assessed and the assessment was completed by the assessing officer on the basis of searched material and after discussing the details and Explanation filed by assessed. The assessing officer dealt with item wise and then completed the assessment under section 158BC on a total income of Rs. 1,08,37,830 against the total income disclosed by assessed at Rs. 65,14,400 of the block period.

(3.) AS stated above, the assessed filed return of income of the block period at Rs. 65,14,400 and out of this income, the assessed has claimed credit for returned/assessed income at Rs. 43,00,080, Thus, the total undisclosed income declared by assessed was at Rs. 21,96,320. Out of this undisclosed income, the assessed has claimed a further deduction of Rs. 14,22,896 on account of undisclosed agricultural income and in this way, balance sum of Rs. 7,73,424 was declared as non -agricultural and undisclosed income. The chart showing income of Rs. 65,14,400 and then claiming deduction on account of undisclosed agricultural income and net undisclosed income, which was filed by the assessed, is reproduced at p. 2 of the order of the assessing officer, which is reproduced here as under :