Surcharge leviable not depend on the liability of the assessee to pay income tax but on the assessed tax

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
We have heard the learned DR and the learned counsel for the assessee. The learned counsel for the assessee filed written submissions with a copy orders pages 1-20. The interesting point is that the revenue filed misc. petition in connection with IT(SS) No.185/Kol/2003 the assessee filed Misc. Application bearing MA No.153/Kol/05 arising out of MA No.50/Kol/05 in IT (SS)A No.185/Kol/03. The Tribunal vide its order dated 28-2-2006 has recalled only ground no.1 for fresh adjudication. For the purpose of clarity, we reproduce the second round of tribunal order dated 13-10-06 as under:- “That the ld.CIT(A) was wrong in confirming the addition of Rs.7,50,975/- based on the undisclosed Bank a/c, peak balance. The assessee disclosed income of Rs.1,53,28,003/- in his block return based on the assets/expenses found in the course of search and made further offer of income in the course of assessment proceeding of Rs.4,01,306/- based on the assets/expenses found in course of search. Details is given in page no.27 & 28 of the CIT(A)’s order. No documents except the undisclosed Bank a/c was found, as such when income is determined based on application of fund, than again making addition based on income is nothing but double addition and against the accounting principle. As such, addition is bad in law and need to be deleted.”

Citation :
A.C.I.T, C.C-XXV, Kolkata [Applicant] Vs. Loknath Prasad Gupta PAN: ADUPG 5810F [Respondent] M.A. No.117/Kol/2007 [Arising out of IT (SS) A No. 185/Kol/03 ]Block Assessment Period 1-4-1990 to 8-9-2000 D.C.I.T, C.C-XXV, Kolkata [Applicant] Vs. Loknath Prasad Gupta PAN: ADUPG 5810F [Respondent]