CHITRA VENKATARAMAN, J. - (1.)THE Tax Case Appeals are filed by the Revenue against the orders of the Income Tax Appellate Tribunal relating to assessees viz., N.Chandramoulidevi, V.Hemalatha and N.Venkatesan.
(2.)THE following substantial question of law is raised in T.C.Nos.463 and 464/2005:-
"1. Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in setting aside the block assessment made under Section 158BC of the Income Tax Act on the assessee for the block period ended 09.11.1995 with the direction that the total income or loss of each previous year should be computed as per the provisions of Chapter IV, even though the returns for the assessment years 1994-95 and 1995-96 were not filed without considering the retrospective amendment made to Explanation to Section 158BB by Finance Act with effect from 01.07.1995""

The following substantial questions of law are raised in T.C.No.1308 of 2005:-

"1. Whether, in the facts and circumstances of the case, the Tribunal was right in holding that losses of the assessment year 95-96 claimed in the belated return had to be set off against the undisclosed income for the block assessment years85-86 to 95-96 " 2. Whether in the facts and circumstances of the case, the losses that are not permitted to be carried forward on account of delayed filing of return, can be treated as undisclosed and set off against undisclosed income under Chapter XIV B of the Income Tax Act""

The appeals relate to the case of block assessment covering the Block period 1985-86 to 1994-95. A search was carried out in the premises of Soora Nagarajan on 09.11.1995, who was the Managing Director of M/s.Soora Thayarammal Shopping Complex (P) Limited as well in the premises of K.M.Basha Group of Companies. The assessees are stated to be the niece of Soora Nagarajan, who was one of the share holders of the Company M/s.Soora Thayarammal Shopping Complex (P) Limited. Based on the results of the search, notice under Section 158 BC read with 158 BD of the Income Tax Act, 1961 was issued to the assessees calling for returns of the Block period. In all the three cases, the assessee filed their return admitting 'NIL' undisclosed income.

(3.)AS against the assessment made, the respective assessee filed appeals before the Income Tax Appellate Tribunal. Based on the orders passed in the case of Shri.N.Nandakumar, Shri Soora Nagarajan, Shri N.Venkatesan, Smt.N.Vimala, the Tribunal allowed the appeals and set aside the order of the ASsessing Officer by giving direction to the ASsessing Officer to allow the assessees' claim for long term and short term capital loss arising from the sale of shares, which had taken place during the block period ending 09.11.1995 and compute the total undisclosed income of the assessees. Aggrieved by the said direction, the Revenue is on appeal before this Court raising the above questions of law.
Learned Standing Counsel for the Revenue placed before this Court the decision in T.C.280 of 2004 dated 07.07.2004 in the case of Commissioner of Income Tax, Coimbatore Vs. Sri Soora Nagarajan, wherein, this Court dismissed the Tax Case Appeal filed by the Revenue pointing out that the order of the Income Tax Appellate Tribunal was passed with the consent of the Revenue to remit the matter back to the Assessing Officer to determine the value of the land, shares and capital loss after giving opportunity to the assessee. In the background of the said fact, this Court pointed out that it is not necessary to get into the contentions of the Revenue.