Case Law Details
The Hon’ble Supreme Court in the case of CIT Vs. Raju Bhatra reported in (2009) 310 ITR 105 (SC) has laid down the ratio that surcharge leviable under the Finance Act was a distinct charge not dependent for its leviability on the assessee’s liability to pay incometax but on assessed tax. Therefore, even without the proviso to section 113 of the Income-tax Act, 1961 relating to tax in the case of block assessment of search cases, the Finance Act, 2001 was applicable to block assessment under Chapter XIV-B in relation to the search initiated on April6, 2000 and according surcharge was leviable.
In this we find that search and seizure action u/s. 132(1) of the I.T Act 1961 was conducted in the case of Sri Loknath Prasad Gupta on 8-9- 200 only. Hence, the said decision of the Hon’ble Supreme Court is directly applicable. The decision of the Hon’ble Apex Court has to be followed. There is a mistake apparent on record as urged by the department in these misc. applications. Hence, after considering the rival submissions, the issue of surcharge is decided in favour of the revenue and against the assessee by following said decision of the Hon’ble Supreme Court in the case of cited supra. The decision of the Hon’ble Supreme Court in the case of CIT Vs. Suresh N.Gupta [2008] 297 ITR 322(SC) is also applicable on this issue, which supports the stand of the department.
INCOME TAX APPELLATE TRIBUNAL, KOLKATA
M.A. No. 32/Kol/2010 [Arising out of IT (SS) A No.190/Kol/03 ]
Block Assessment Period 1-4-1990 to 8-9-2000
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