ALAKA GOSWAMI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The appellant in ITA No. 43/03 Dr (Mrs) Alaka Goswami is a medical practitioner and her husband Dr Anil Kumar Goswami, appellant in ITA No. 42/03, is an Ex Principal of the Cotton College. Guwahati. Both are the assessees under the Income tax Act, 1961 (for short "the Act").

(2.) Search and seizure was conducted on 21.8.96 under Sec 132 of the Act at the residence of the appellants. In response to the notice under Sec 158 BC the appellants filed return disclosing undisclosed income for the block period of 1.4.86 to 21.8.96. In the said block period the undisclosed income for the assessment year 1995-96 was also included and the appellants claimed that for the period relevant to the said assessment year 1995- 96, comprised in the block period, the Assessing Officer ought to have determined the undisclosed income after allowing deduction for basic exemption, i.e. the maximum amount on which no income tax was payable for that assessment year. The Appellate Tribunal relying on the provisions contained in Sec 158 BB(1), Sec 158 BA(2), Sec 113, Sec 158 BC and Sec 88(1) of the Act did not accept the contentions raised by the appellants and rejected the same. Being aggrieved, the appellants have preferred the appeals before this court.

(3.) The appeals have been admitted on the following substantial questions of law: