COMMR.OF INCOME CENTRAL-II vs SURESH N.GUPTA

The Supreme Court ruled that the imposition of surcharge under Section 113 of the Income-tax Act, 1961, on the undisclosed income assessed during a block assessment is valid. The Court held that the Finance Act, 2001, was applicable to block assessments under Chapter XIV-B, and the proviso inserted in Section 113 by the Finance Act, 2002, is clarificatory in nature. The appeal by the assessee challenging the surcharge was dismissed, affirming the decisions of the lower authorities.