COMMISSIONER OF INCOME TAX Vs. MAHA SINGH RANA

JUDGEMENT

(1.) NEW Delhi (Tribunal) in IT(SS) Appeal Nos. 22/Del/2001, 23/Del/2001 and 24/Del/ 2001, all relevant to the block period amount by cheque and some amount in cash in respect of the sale of the land. The amount received in cash was deposited in the bank account of the assessee. According to the AO, the cash amount was the undisclosed income of the assessee and therefore, he sought to include and assess the amount in the block assessment period.

(2.) THE CIT(A) as well as the Tribunal took the view that the time for filing the regular return had not expired and that the assessee had also filed the regular return by disclosing the entire sale proceeds. It was accordingly held that in view of the provisions of ss. 158BA(3) and 158B(b) of the Act, these receipts on account of sale proceeds could not be treated as undisclosed income in the hands of the assessee. We also find from the perusal of s. 158B(b) and s. 158BA of the Act that such income would be treated as undisclosed income if, but for the search, it would not have been disclosed in the books of account or other documents. Clearly in the present case, even before the search took place, the cash income was disclosed in the 'other documents', that is, in the bank account of the assessee. Sec. 158BA(3) provides that where any part of income referred to in sub -s. (1) relates to an assessment year for which the previous year has not ended or the date of filing the return of income for any previous year has not expired and such income or the transactions relating to such income are recorded on or before the date of the search or requisition in the books of account or other documents maintained in the normal course, the said income shall not be included in the block period. As noted above, the cash income of the assessee was recorded in the bank account of the assessee before the date of search. We are of the opinion that neither the CIT(A) nor the Tribunal erred in coming to the conclusion that the Revenue should have assessed the income of the assessee under s. 143(3) of the Act and not under Chapter XIVB of the Act. No substantial question of law arises. Dismissed.