COMMISSIONER OF INCOME TAX Vs. SHARMILA PANDEY

JUDGEMENT

(1.) THIS appeal was admitted in terms of the following question :

(2.) A search under Section 132(1) was conducted at the residential premises of the assessee on 9th Nov., 1995. A notice under Section 158BC was issued to the assessee on 9th Feb., 1996. Notice for the block year was served on the assessee. She had filed regular returns of her income only for the asst. yrs. 1995 -96 and 1996 -97. The block period for assessment after the search is 1985 -86 to 1994 -95 and in 1995 -96, only the period till the date of search. At p. 10, the AO has shown the position of total income including the undisclosed income and the returned income/assessed income of the block period as under :

(3.) AT the outset, learned counsel for the assessee brought to our notice the amendment made in 2002 whereby Clause (c) of Sub -section (1) of Section 158BB has been substituted and this amendment has been made with retrospective effect from 1st July, 1995. Therefore, in the light of this amendment, on the basis of entries recorded in the books of account, that amount cannot be treated as undisclosed income.