- (1.) THIS appeal has been filed by the Revenue, against the judgment of Tribunal, dt. 28th Nov., 2001. This appeal was admitted vide order dt. 9th Dec., 2002, by framing the following substantial question of law: (i) Whether, on the facts and in the circumstances of the case the Tribunal was justified while interpreting the provisions of Section 158BB(1)(c) of the Act that credit of the income is to be given while computing undisclosed income even if no return is filed under Section 139(1) in the cases of below taxable income ?
(2.) THE facts of the case are, that the assessment was made for block period 1988 -89 to 1999 -2000, and that matter was carried upto the Tribunal, and the Tribunal, ultimately while deciding ground No. 8, relating to deletion of addition of Rs. 1,57,467, held that the addition was deleted by the CIT(A) holding that the assessee was not having taxable income during the period, and was not under the obligation to file a return, and so merely on account of non -filing of the return of income, the assessee's income cannot be computed as undisclosed income, and this was found to have been so considered rightly. It may be observed, that this is not in dispute that this amount of Rs. 1,57,467 represents the amount of income of the assessee during the relevant previous years, in which his income was below taxable limits, and for those period, the assessee was not under the obligation to file any type of IT return.
(3.) IT is contended by the learned Counsel on behalf of the Revenue, on the basis of language of Section 158BB, that in the case of search and seizure, when the block assessment is to be made, income is to be computed in accordance with various provisions of Chapter IV, and no deduction can be allowed, with respect to the income, during the years, during which it was below taxable limits, and therefore, the order of the Tribunal, so also CIT(A) is required to be interfered with. On the other hand, learned Counsel for the assessee supported the impugned order, contending it to be in accordance with the provisions of Section 158BB. ;