COMMISSIONER OF INCOME TAX Vs. KERALA ROADWAYS LTD.

JUDGEMENT

(1.) THIS tax case (appeal) is at the instance of the CIT, Central -II, Chennai, questioning the order of the Tribunal, Chennai,

(2.) THE substantial question of law, on which the appeal is filed is as follows : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the assessment under Chapter XIV -B in the light of the specific provision contained in s. 158BB(1)(c), even though the return of income filed after the search, on that basis the AO computed the income as undisclosed income -

(3.) THE respondent, M/s Kerala Roadways, is the assessee on the file of the Revenue. A search under s. 132 of the IT Act, 1961 was conducted in the business premises and it was noticed that the total undisclosed income admitted in the block return included a total loss of Rs. 2,42,71,600 and the same was set off against undisclosed income of the 2007, was set aside with a direction to the AO to verify the figures returned in Form 2B and arrive at the correct 17,89,147, for the advance tax at Rs. 16,15,000 and for self -assessment tax at Rs. 29,62,507, in all totalling a sum of Rs. 63,66,654, the balance amount was treated as undisclosed income. Therefore, the AO, namely, the Dy. CIT, Central