The Tax Publishers2021 TaxPub(DT) 0945 (Del-Trib)

INCOME TAX ACT, 1961

Section 158BC

Income already disclosed in the regular return could not be assessed as 'undisclosed income' for the purpose of section 158B(b).

Search and seizure - Assessment under section 158BC - Undisclosed income - Amount already disclosed in regular assessment

Question arose for consideration was whether income already disclosed in the regular return, could be assessed as undisclosed income in block proceeding under section 158BC.Held: The amended definition of 'undisclosed income' in section 158BB clearly suggests that some evidence is to be found as a result of search operation and it is only thereafter that remaining part of provisions come into play and that too the remaining evidence must be relatable to evidence recovered during the course of search. The other amendment in section 158B(b) has enlargfed the meaning of the term 'undisclosed income' by including therein 'any expense, evidence must be relatable to evidence recovered during the course of search. The other amendment in section 158B(b) has enlarged the meaning of the term 'undisclosed income' by including therein 'any expense, deduction or allowance claimed under this Act which is found to be false.' What has to be seen is that the valuable articles, documents or transactions which represent wholly or partly income or property which has not been or would not have been disclosed for the purpose of Act. Therefore, before coming to analyze what is undisclosed income, it is necessary to be seen that such income has not been or would not have been disclosed for the purpose of this Act. If any such article or thing or income has already been disclosed to the department prior to the search, it cannot be termed that the same has not been or would not have been disclosed for the purpose of this Act. Therefore, amounts already disclosed in regular assessments are outside the purview of the definition of 'undisclosed income'.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2002-03


INCOME TAX ACT, 1961

Section 158BC

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