Law:

Section:

Section 158B, read with section 139, of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income - Block period 1985 to 1995 - Whether once salary income of block year has been taxed and TDS has been deducted, then such income cannot be treated as undisclosed income for taxing it again in block year after search - Held, yes FACTS During search and seizure operation at the assessee's residential premises, various FDRs, cash and incriminating documents were found out and seized. A notice under section 158BC was issued to the assessee requiring him to file return of income for block period. The assessee had filed return for period, i.e., 1986-87, declaring his total income as nil. The Assessing Officer treated income from salary as income from other sources. The assessee had not filed return of income for block period 1985-86 to 1989-90 as per section 139(1A) because he was having only salary income. For the block period, the Assessing Officer assessed the salary income. The Tribunal held that the assessee was having income only from salary from which TDS had already been deducted, so he was not obliged to file return as per section 139(1A), and thereby deleted the additions. The Tribunal, however, directed to allow the credit for TDS in block assessment. On appeal : HELD The TDS had been deducted from the income of salary and there was nothing on record to show that the TDS amount had been taken back as refund by the assessee. Once the salary income of the block year had been taxed and TDS had been deducted, there was no question of holding that the income of the assessee was an undisclosed income for taxing it again in the block year after search. When the Tribunal had excluded it and held that it could not be taxed twice, there was no question of any accommodation of TDS against any other income when the salary income had not been taxed in that block year. The Tribunal had wrongly held in favour of the assessee the issue of allowing the claim of TDS which had already been deducted from the income of salary and which had not been treated as undisclosed income of the assessee in block assessment. In short, the Tribunal was right and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492