COMMISSIONER OF INCOME TAX Vs. A CHANDRAN

JUDGEMENT

(1.) IN all these cases, the common question of law raised for consideration is:

(2.) IN all these cases, the respondents were duly served. The first tax case in T.C.No.2622 of 2006 is taken up as a typical case. IN that case, there was a search under Section 132 in the residential premises of the assessee on 22.6.1999. A block assessment was framed for the block period 1.4.1989 to 20.8.1989, and the block assessment order was passed on 27.8.2001. The assessing officer levied a surcharge at 10 percent on the tax payable on the block assessment. The appeal preferred by the assessee before the Commissioner of Tax (Appeals) ended in dismissal. However, on further appeal to the Tribunal, the Tribunal following the decision of Special Bench of INcome-tax Appellate Tribunal, Hyderabad in the case of Merit Enterprises held that prior to the introduction of proviso to Section 113 with effect from 1.6.2002 surcharge was not leviable. The correctness of the same is put in issue in this appeal.