N.V. Vasudevan, J.M. - (1.) THIS is an appeal by the assessee against the order dt. 28th April, 1997, of the Asstt. CIT (Inv.) Circle-2(1), Raipur, under Section 158BC(c) for the block period 1st April, 1985, to 20th Oct., 1995.
(2.) The assessee is a private limited company engaged in the business of Iron and steel re-rolled products. There was a search and seizure operation carried out in the business premises of the assessee on 20th Oct., 1995. The search concluded on 20th Oct., 1995. A notice under Section 158BC was issued to the assessee calling upon him to file a return of income for the block period. The AO noticed that the assessee being a company was required to get the accounts audited by an auditor under the Companies Act as well as under the IT Act but had failed to get it's accounts audited. The AO, therefore, thought it fit to invoke the provisions of Section 142(2A). One Mr. P.P. Maitra, chartered accountant, was appointed auditor to audit the accounts of the assessee-company. The auditor filed his report on 9th April, 1997. Thereafter, the assessee also filed his return of income on 15th April, 1997, for the block period declaring a loss of Rs. 8,95,116. The assessee had commenced business only on 13th March, 1989. Hence, return of income for asst. yrs. 1989-90 to 1996-97 alone had been filed by the assessee. In respect of asst. yrs. 1989-90 to 1992-93 the assessee had filed his return of income and regular assessments have been completed in respect of those years. In respect of these years no material was discovered in the course of search and consequently no income is assessable as undisclosed income in respect of these years. In respect of asst. yrs. 1993-94 and 1994-95 the assessee had not filed his return of income within the prescribed period and hence income as returned was taken as Nil under Section 158BB(l)(c). In respect of asst, yrs. 1995-96 and 1996-97 the assessee filed his return of income on 25th April, 1997, which was after the due date of filing of the return disclosing loss of Rs. 3,56,325 and Rs. 17,90,002, respectively. The return of income for asst. yr. 1996-97 was processed under Section 143(1)(a) and the returned loss was accepted on 18th Feb., 1998. In the block assessment the AO however, determined the income for asst. yr. 1995-96 and 1996-97 at Rs. 80,05,785 and Rs. 13,27,004, respectively.
(3.) THE basis of determination of income for asst. yrs. 1993-94 to 1996-97 which are in challenge in these appeals are as follows : JUDGEMENT_13214_TLIT0_20020.htm ;