POONAM JINDAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE brief facts are that a search was carried on the business and residential premises of the assessee on 20.11.1997. The fixed deposit receiptsand share certificates were found and seized. The Assessing Officer finalizedblock assessment for the period from 01.04.1987 to 20.11.1997. Prior to such assessment, the assessee has filed a return for the Assessment year 1994 -95declaring income of Rs.28,250/ -. In the block assessment pertaining toAssessment Year 1994 -95, the Assessing Officer made addition of Rs.1,50,000/ -whereas for the assessment years 1990 -91 and 1991 -92, the undisclosed income was found to be Rs.26,750/ - and Rs.61,000/ - respectively. The entire undisclosed income in the assessment years 1990 -91 and 1991 -92 were taxed athigher rate, whereas exemption was allowed in respect of return filed for the assessment year 1994 - 95. It is the said order, which has been affirmed by theTribunal in appeal on 03.04.2000 out of which the present appeal under Section260A of the Income Tax Act, 1961 arises.

(2.) THE following substantial question of law arises for consideration in the present appeal:

(3.) CHAPTER XIVB is a special provision to frame assessment consequent tosearch and seizure operations carried out by the Revenue. Section 158BAconfers recording of satisfaction of the Assessing Officer to exclude anyincome from the block assessment on the basis of books of accounts and otherdocuments maintained in the normal course. None of the provisions of Chapter XIVB contemplates that an assessee shall be entitled to exemption even if he has not maintained any books of accounts or produced documents tosatisfy the Assessing Officer that the income generated is not part ofundisclosed income."