2011 (7) TMI 318

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.... 2. As the said issue involved in all these appeals is same and the Tribunal has disposed of all the three appeals by common order, we are also disposing of the appeals by a common order. 3. A search was conducted under section 132 of Income-tax Act, 1961 on 18-1-2001 in the premises of the assessees. Consequently, notice under section 158BC was issued. On the date of the search, due date of filing the assessment years 1999-2000 and 2000-01 stood expired. The assessees have not filed their returns. Assessees enjoyed taxable incomes during these periods. The source of the said taxable income was income and remuneration from the partnership firms in which they were partners, in reply to the notice under section 158BC the assessees confirm....

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....er without any success and where the said appeal came to be dismissed. Aggrieved by the said order, the assessees preferred appeals before the Tribunal. The Tribunal on a careful consideration of the material on record, the definition of the undisclosed income as defined under section 158B of the Act and taking note of various decisions rendered by the High Courts of the Country and also the judgment of the Supreme Court held that the moment TDS is paid, advance tax is paid, the income with reference to which the said payments were made becomes a disclosed income and they cannot be the subject-matter of a block assessment proceedings, on the pretext of they not being disclosed by filing a return. Therefore, it set aside the block assessment....

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....disclosed in the books of other firms about remuneration and interest paid to the assessee would be sufficient to treat the said amount of income as disclosed and take it out of the purview of the Block assessment proceedings?" 8. From the aforesaid materials on record, the facts are not in dispute. The assessees are partners in various firms. They have advanced loans to the said firms. The said firms have paid remuneration to them. The said firms have paid interest on the loan borrowed by the firms. Insofar as the interest payment is concerned, they have deducted the Tax Payable at Source for the amounts paid by these firms. All these payments are reflected in the books of account. Admittedly all the firms have filed returns before the ....