TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court Upholds Tribunal Decision on Revenue's Appeal for Block Assessment</h1> <h3>COMMISSIONER OF INCOME-TAX Versus S. AJIT KUMAR</h3> The Revenue's appeal under Section 260A of the Income Tax Act, 1961, regarding the utilization of material found in a survey for block assessment was ... Construction of residential bungalow & interior decoration by engaging builder – it is not disputed that cost of construction through builder was known to dept. even before search – no material found during search in respect of amount said to paid in cash over & above the cheque payment - Tribunal was right in holding that the material found in the course of survey in the premises of the builder could not be used in making addition in the block assessment of assessee Issues Involved:1. Utilization of material found in survey for block assessment.2. Relatability of information found during survey to search operation material.Issue 1: Utilization of material found in survey for block assessment:The appeal was filed by the Revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income-tax Appellate Tribunal regarding the utilization of material found in a survey for block assessment. The Tribunal held that information found in the survey operation of a builder's premises could not be used as a basis for making any addition in the block assessment. The Revenue contended that the cash payment made by the assessee to the builder was not accounted for in the assessee's books. However, the Tribunal, following statutory procedures under Section 158BB of the Act, concluded that the material found during the survey operation was not relatable to any material found during the search operation. The Tribunal's decision was in line with the judgment in the case of Commissioner of Income-tax Vs. G.K.Senniappan, emphasizing the importance of evidence found as a result of search for computation of undisclosed income in the block period.Issue 2: Relatability of information found during survey to search operation material:The second substantial question of law raised was whether the information found during a survey at the builder's premises could be used in block assessment. The Court noted that the construction and interior decoration work done by the builder for the assessee was known to the Department even before the search operation. The Tribunal correctly concluded that the material found during the survey operation was not directly related to any material discovered during the search operation. The Court upheld the Tribunal's decision, stating that the statutory provisions under Section 158BB require evidence found as a result of search or requisition of books of account for computation of undisclosed income in the block period. The Court dismissed the appeal, finding no error or legal infirmity in the Tribunal's order, which was based on relevant materials and evidence.In conclusion, the Court affirmed that the Tribunal's decision was in conformity with the law, and no substantial questions of law necessitated the Court's interference. Therefore, the tax case was dismissed with no costs incurred.
TaxTMI 
TaxTMI 
