Commissioner of Income Tax and Another vs Smt. Lily Tobias

The only question for consideration in this appeal is as to whether the undisclosed income of a particular block period if not taxable would be treated as an undisclosed income on non-filing of the return. It is an admitted position that with effect from July 1, 1995, the amendment has been made in Section 158BC of the Finance Act which clearly provides that if the income of the particular assessment year falling within the block period is not taxable the same shall not be treated to be undisclosed income. No doubt in this case some orders in a block period are prior to July 1, 1995, but taking into consideration the facts of this case, the intention of the Legislature as evident from amendment and in the facts of the case, we are of the view that no substantial question of law arises for determination. So far as the other points are concerned, they are concluded by findings of facts arrived at on appreciation of evidence. In the result, no case for interference is made out u/s 260A of the Income Tax Act. Accordingly, the appeal is dismissed.