CIT Vs. D B FINANCE (P) LTD

JUDGEMENT

(1.) This appeal is filed against the order dated 27-12-2006 passed in M.P. No. 174/Mad/2005 in IT(SS)A No. 24/Mad/1998. The relevant block period ended on 10-10-1996.

(2.) The assessee was doing finance business. In the assessee's business premises, there was search and seizure operation under Section 132 of Income Tax Act, 1961, which commenced on 10-10-1996 and came to completion on 4-12-1996. In this case, there was no such warrant under Section 158BC in the name of the company. However, the proceedings have been initiated under Section 158BD as in the case of search proceedings against Shri Dulip Chand Chordia and others, some of whom were, the directors of the assessee company.

(3.) At the time of search, evidence was found that the assessee company is having income of Rs. 4,17,400 for the assessment year 1994-95 and Rs. 5,59,240 for the assessment year 1995-96. The assessee did not file return for the two assessment years. The assessee had filed returns in response to notice under Section 158BD including the amounts for the assessment years 1994-95 and 1995-96, but claiming that the application under VDIS, 1997 was filed. The assessing officer treated the undisclosed income as per the provisions of Section 158B(1)(c) and computed the income.