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JUDGMENT 1. Challenging the order dated May 20, 2005, in I. T. (SS) A. No. 17/Pat/ 2002 passed by the Income-tax Appellate Tribunal, Circuit Bench, Ranchi, whereby the Commissioner of Income-tax (Appeals) rejected the Revenue's appeal, the Revenue has approached this court by filing the present Tax Appeal No. 7 of 2005. 2. The assessee is a private limited company engaged in manufacture of chemicals used mainly by steel plants. A search and seizure operation under section 132(1) of the Income-tax Act, 1961 (in short, "the Act"), was conducted on October 29, 1998, simultaneously in the office premises of the assessee-company and at the residence of the managing director of the company and others. During the search, certain cash and FDRs were recovered and seized. A notice under section 158BC of the Act was issued by the Assessing Officer on November 20, 1998, requiring the assessee to file the return for the block period April 1, 1989, to October 29, 1998, within a period of 16 days. The assessee filed the return on March 1, 1999, disclosing the undisclosed income of Rs. 1,17,00,000 only. Subsequently, the assessee filed a notarised affidavit on August 16, 1999, disclosing additional undisclosed income of Rs. 58,20,815. A notice under section 143(b) of the Act was issued on August 24, 1999, and the proceeding was conducted on different dates before the Assessing Officer. 3. Before the Assessing Officer, the assessee contended that the delay in filing the return under section 158BC was attributable to the Department as the assessee was not provided with the extract of the seized documents for which it was entitled under section 132(9) of the Act. It was contended that the return was filed in a haste with a view to avoid penal interest and, therefore, in the absence of the relevant documents the total concealment could not be disclosed by the assessee. It was further contended that since the assessee itself disclosed an additional concealed income of Rs. 58,20,815, before it was otherwise detected by the Department, there was no mala fide intention on the part of the assessee to defraud the Revenue. Lastly, it was contended that since there was no willful…

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