CIT Vs. KEWAL KRISHAN BAWEJA

JUDGEMENT

(1.) THIS is an appeal filed by Commissioner of Income -tax (Revenue) under Section 260A of the Income Tax Act against an order dated 18 -8 -2003 passed by ITAT in ITA No. IT(SS)A No. 25 /IND /2002. This appeal was admitted for final hearing on following substantial questions of law: 1. Whether ITAT was justified in quashing the assessment order, dated 25 -11 -1997 framed under Section 158BC ?

(2.) WHETHER there were valid grounds available to the Tribunal to quash the assessment order dated 25 -11 -1997 under Section 158BC and if so whether order of Tribunal can be sustained on those grounds ? 2. Heard Shri R.L. Jain, learned Sr. Counsel with Ku. Veena Mandlik for the appellant/Revenue and Shri G.M. Chaphekar, learned Sr. Counsel with Shri D.S. Kale, for respondent/assessee.

(3.) IN the block assessment for the period 1 -4 -1986 to 31 -10 -1986 an assessment order was passed in respect of an income already disclosed by the assessee in his regular return filed under Section 139 of the Act. The contention of assessee before the Commissioner in revisional proceedings and later before the Tribunal was that income disclosed in the return filed under Section 139 of the Act cannot be treated as income from undisclosed sources for the purpose of block assessment. This contention found favour to Tribunal and accordingly the order passed by Commissioner in Section 263 proceedings was set aside in IT(SS) A/6/IND/2000 by the Tribunal vide order dated 4 -2 -2003.