C.I.T.,Jalandhar vs Rajiv Bhatara

The Supreme Court upheld the decision of the Income Tax Appellate Tribunal, confirming that surcharge on undisclosed income is not leviable for searches conducted prior to 1.6.2002, as per the amendment to Section 113 of the Income Tax Act, 1961. The Court emphasized that the amendment does not have retrospective effect, thus supporting the Tribunal's ruling that the surcharge was improperly imposed by the Assessing Officer. The appeal was dismissed, affirming the lower court's interpretation of the relevant provisions of the Act.