Seized amount already disclosed in sec. 139 return can't be added back to income during block assessment

IT : Where prior to initiation of block assessment proceedings, assessee filed his return under section 139 wherein amount seized from him had already been disclosed, in view of provisions of clause (b) of sub-section (1) of section 158BB, amount so disclosed could not be added to assesse's undisclosed income while completing block assessment

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[2014] 42 taxmann.com 81 (Punjab & Haryana)

HIGH COURT OF PUNJAB AND HARYANA

Commissioner of Income-tax (Central), Ludhiana

v.

Jagpreet Singh*

Section 158BB, read with section 139, of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income, computation of - Block period 1-4-1988 to 5-10-1998 - In case of assessee, a sum of Rs. 7 lakhs was seized by police and action under section 132A was initiated - Subsequently, warrant of requisition was executed and money was paid by police to department - In response to a notice, assessee filed his return - Block assessment under section 158BC was framed wherein amount of Rs. 7 lakh was included in assessee's undisclosed income - However, prior thereto assessee had filed its return under section 139(1) for assessment year 1999-2000 wherein said sum of Rs. Seven lakhs had been declared - Return so filed by assessee had been processed under section 143(1) - In such circumstances, Commissioner (Appeals) and Tribunal held that benefit of amount of Rs. 7 lakhs which was disclosed in return filed by assessee under section 139 was admissible to assessee while computing his undisclosed income - Whether in view of provisions of clause (b) of sub-section (1) of section 158BB, impugned order passed by Tribunal was to be upheld - Held, yes [Para 9][In favour of assessee]