COMMISSIONER OF INCOME TAX Vs. PURSHOTTAMLAL TAMRAKAR UCHEHRA

JUDGEMENT

(1.) THIS is a reference under Section 256 (1) of the IT Act wherein the Tribunal has referred the following two questions for answer to this Court. They read as under :

(2.) WE need not to state the facts in detail except mentioning that the assessee carried on the business of manufacture and sale of metallic utensils, particularly of gillate as well as trading in stainless steel utensils on a small scale. A search and seizure was conducted on the residential and business premises of the assessee within the period 10th Oct. , 1995 to 12th Oct. , 1995. The block period of which the assessment was made under Chapter XIV-B was for the assessment years, namely, 1986-87 to 1996-97. A notice under Section 158bc of the Act was issued and the assessee furnished a return of income on 8th July, 1996, declaring undisclosed income at Rs. 4,04,959. The assessee further furnished another return on 11th Oct. , 1996, declaring additional undisclosed income of Rs. 2,85,766. When the matter travelled to the Tribunal, it was put forth by the assessee that the deduction under Section 158bb was not properly allowed by the AO, The Tribunal found that the assessee had maintained the books of account and the income as per the books of account and the income was below the taxable limit. In that factual backdrop, the Tribunal directed the AO to allow deduction under Section 158bb in respect of the income as per books of account. Being aggrieved by the aforesaid direction, the Revenue filed an application for referring four questions to this Court and the Tribunal has formulated two questions as stated earlier.

(3.) AS far as the question No. 1 is concerned, it is pertinent to reproduce Clause (c) of Section 158bb as the aforesaid provision is relevant for our purpose.