2002 TAX. L. R. 369 ::(2002) 173 CurTaxRep 357 ::(2002) 254 ITR 45 ::(2002) 1 Ker LT 432 ::(2002) 121 Taxman 336 ::(2002) 171 Taxation 515

Kerala High Court

Hon'ble Judge(s): S. Sankarasubban, C. N. Ramachandran Nair , JJ

Income-tax Act (43 of 1961) , S.158-bb, S.158-BC— Block assessment - Undisclosed income - Computation - Exclusion of income below taxable limit of any previous year in block period is not necessary. In the matter of block assessment while computing the undisclosed income, the income below the taxable limit of any previous year in block period is not to be excluded on the ground that such income has not been declared by the assessee by filing return of income. Hence, it cannot be said that, for some years since the income was less than the assessable limit, that income cannot be taken into consideration. There is no room for finding out whether the income for each of the years was below the taxable limit or not. The only deduction which the assessee is entitled is as provided under S. 158-BB cls. (a) to (f) of Income-tax Act (1961). Thus, when the assessment is for a block period, then it is not necessary to find out whether the income was below the taxable limit. (Para 5 6) Also, Note 5 to Form 2-B of Return of Income cannot be invoked in this respect. As a matter of fact, the said note specifically states that even though the return is not filed on the ground that the total income is below the taxable limit, the total income has to be mentioned against the previous year. F....