2004 (8) TMI 334

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....ent by the CIT(A) on the basis of certain material found in the course of search. 2. Briefly stated, the facts are that in the course of regular assessment proceedings under s. 143(3), it was seen that assessee had declared household expenses at Rs. 54,000. His family comprises of himself, his wife and three children-out of which two were school-going. It was also noticed that the other family ....

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....orth Rs. 2.47 crores. The balance amount of Rs. 1.92 crore was added as undisclosed income in the hands of the assessee in the block assessment proceedings. It was also noted by him that this new property was fitted with various air-conditioners, i. e., four air-conditioners of 1. 5 tons, 1 split air-conditioner of 10 tons and one split air-conditioner of 2 tons at the ground floor and basement, w....

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....account of electricity expenses and conveyance expenses. Aggrieved by the same, the assessee is in appeal before the Tribunal. 4. The learned counsel for the assessee Mr. Jain has vehemently assailed the order of the CIT(A) regarding enhancement of income as well as confirmation of the household expenses by contending that regular assessment proceedings and block assessment proceedings are inde....

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....ent. In that case, it has been clearly held that AO shall not include the block amount of income in the regular assessment and vice versa. It has been further held that the material found in the course of search could not be used by the AO in the regular assessment proceedings. Therefore, following the said judgment, it is held that CIT(A) could not enhance the income on the basis of material foun....