LALIT HOSIERY Vs. UNION OF INDIA

JUDGEMENT

(1.) This petition seeks quashing of order dated 23.9.2004, Annexure P.1 to the extent of holding that surcharge under section 113 of the Income Tax Act, 1961 (for short, 'the Act') was payable for the block period 1.4.1990 to 24.5.2000, though the said provision was not in force during the relevant period.

(2.) Case of the petitioner is that search was conducted in the premises of the petitioner on 24.5.2000 which was followed by notice under section 158 BC of the Act on 10.10.2000. The petitioner filed return on 13.2.2001 for the block period 1.4.1990 to 24.5.2000 declaring undisclosed income. The petitioner also filed an application before the Settlement Commission, which was disposed of on 23.9.2004 determining total income and also levying surcharge in terms of Finance Act 2000.

(3.) Contention raised on behalf of the petitioner is that in Section 113 of the Act, provision for surcharge has been incorporated only with effect from 1.6.2002, which was prospective and, therefore, surcharge was not leviable. Learned counsel for the assessee relied upon order passed by this Court in ITA No.29 of 2006 (The Commissioner of Income tax (Central) Ludhiana v. Shri Roshan Singh Makker), decided on 16.5.2006, dismissing the appeal of the revenue against the order of the Tribunal to the effect that surcharge was leviable w.e.f 1.6.2002.