COMMISSIONER OF INCOME TAX Vs. PANKAJ KUMAR JAIN

JUDGEMENT

(1.) 2003, for the block period 1989 -90 to 1999 -2000. The appeal has been admitted on the following substantial question of law : "Whether the Tribunal erred in upholding the deletion of Rs. 1,91,550 made by the CIT(A) in view of s. 158BB(1)(ca) of the IT Act, in the facts and circumstances of the case.

(2.) The facts giving rise to the above question are that in the search and seizure carried out under s. 132 of the IT Act, 1961, in the premises of the maternal uncle of the assessee, gold and jewellery of the value of Rs. 2,21,710 and silver jewellery of the value of Rs. 18,79,692 total Rs. 21,01,402 was found and was seized. During this period the assessee had filed a return showing his income as nil. Accordingly, the AO assessed the undisclosed income at Rs. 1,91,550 as the assessee did not furnish returns of income for the assessment years covered under the block period. The assessee /55, deleted the undisclosed income assessed by the AO. While allowing the appeal, the CIT(A) relied on the decision 2000. The appellant's appeal to the Tribunal against the decision of the CIT(A) was dismissed. It is against this decision of the Tribunal that the present appeal has been filed which has been admitted on the question stated above.

(3.) LEARNED counsel for the Department submits that s. 158BB(1)(c) has been amended by the Finance Act, 2002, with "158BB.(1) The undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed in accordance with the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the AO and relatable to such evidence, as reduced by the aggregate of the total income, or, as the case may be, as increased by the aggregate of the losses of such previous years, determined, - -........... (ca) where the due date for filing a return of income has expired, but no return of income has been filed, as nil, in cases not falling under cl. (c)."