COMMISSIONER OF INCOME TAX Vs. P. RAMANATHAN

JUDGEMENT

(1.) THE Revenue has filed this appeal assailing the order of the Income Tax Appellate Tribunal 'D' Bench, Chennai, dated 20.7.2007 made in I.T.(SS)A.No.60/Mds/2004 for the block assessment year 1989 -1990 to 1998 -1999 and the same was admitted on the following questions of law:

(2.) 1. The facts in a nutshell are as under: The assessee is a broker running a partnership concern named M/s. Shine Well at the Madras Race Club to conduct bets on horse races. There was a search under Section 132 of the Act in the residential and business premises of the assessee on 21.9.1998, which was concluded on 28.1.1999. Based on the materials found during the search, a block assessment was framed for the block period 1989 -1990 to 1998 -1999 and the block assessment order was passed on 31.1.2001. The Assessing Officer levied surcharge on the tax payable on the block assessment.

(3.) THE issue raised in this appeal was considered by a Constitution Bench of the Supreme Court in Commissioner of Income Tax (Central) -I v. Vatika Township Private Limited, : (2014) 109 DTR (SC) 33. For better understanding of the issue, the view taken in the order passed by the High Court, which was challenged before the Supreme Court, and the scope of reference to the Constitution Bench are extracted hereunder: