NDLI: The Assistant Commissioner of Income Tax, Chennai Vs. M/s A.r. Enterprises

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Income Tax Undisclosed Income
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Income Tax Act, 1961 (43 of 1961)
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	INCOME TAX ACT, 1961 Chapter XIV-B - Scope of - Explained - ss. 158 BB, 158 BC and 158 BD read with ss. 132 and 139 -Detection of undisclosed income of assessee during search of another concern - Plea of assessee that since it had paid Advance Tax, its income could not be said to be undisclosed - Held: Payment of Advance Tax, which is based upon estimated income, cannot tantamount to the disclosure of the total income, which must be declared in the return - Disclosure of total income by filing of return u/s 139 is mandatory even after payment of Advance Tax by an assessee - In view of the fact that the assessee had not filed its return of income by the due date, Assessing Officer was correct in assuming that the assessee would not have disclosed its total income. s. 158 - "Undisclosed income" - Held: Undisclosed income is defined by s. 158 B as that income "which has not been or would not have been disclosed for the purposes of this Act" - The only way of disclosing income, on the part of an assessee, is through filing of a return, as stipulated in the Act and, therefore, an "undisclosed income" signifies income not stated in the return filed - Income to be deemed as undisclosed - Explained s. 158 - "Undisclosed income" and tax deducted at source - Held: Since the tax to be deducted at source is also computed on estimated income of an assessee for relevant financial year, mere deduction of tax at source, also, does not amount to disclosure of income, nor does it indicate the intention to disclose income most definitely when the same is not disclosed in the returns filed for assessment year concerned.The respondent-assessee, a firm which came into existence in June 1992, on discovery of some documents in a search operation carried out in premises of another concern on 23.2.1996, was found to have not filed return of its taxable income for the assessment year 1995-96. The assessing officer initiated action u/s 158 BO of the Income Tax Act, 1961, and rejected the plea of the assessee that since in relation to assessment year 1995-96 it had already paid Advance Tax in three instalments, income for that period could not be deemed to be undisclosed. The assessing officer proceeded to compute total undisclosed income for the block period 1993-94 to 1995-96 (upto the date of search) treating the income returned by the assessee for the period 1995-96 as nil in terms of s.158 BB(1)(c) of the Act. The Tribunal and the High Court held that the payment of Advance Tax itself implied disclosure of income on which Advance Tax was paid. In the instant appeals filed by Revenue, the question for consideration before the Court was: whether payment of Advance Tax by an assessee would by itself tantamount to disclosure of income for the relevant assessment year; and whether such income could be treated as undisclosed income for the purpose of application of Chapter XIVB of the Act?
Judge	Hon'ble Mr. Justice D.K. Jain
Neutral Citation	2013 INSC 32
Petitioner	The Assistant Commissioner Of Income Tax, Chennai
Respondent	M/s A.r. Enterprises
SCR	[2013] 1 S.C.R. 295
Judgement Date	2013-01-14
Case Number	2688

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