2012 (2) TMI 115

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....ng him to treat the protective assessment as having been made on substantive basis?"   2. The respondent assessee is an individual and was working as a broker/agent in aluminum market. Search and seizure operation under Section 132 of the Act was conducted on 27th October, 1998. Thereafter, statutory notice under Section 158BC of the Act was issued to which the respondent assessee had filed the return dated 24th December, 1999 declaring „nil‟ undisclosed income. 3. The respondent assessee had earlier made a disclosure of Rs.2,85,00,000/- on 23rd December, 1997 under Voluntary Disclosure of Income Scheme, 1997. Thereafter, certificate under Section 68(2) under the said scheme was issued to him on 24th December, 1997. A....

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.... regular assessment proceedings had made an addition of a similar amount on protective basis out of abundant caution. 8. In the first appeal, the respondent succeeded as the CIT(Appeals) deleted the said addition holding that the cash found of Rs.30,10,000/- was disclosed by the respondent assessee voluntarily. He observed that the Assessing Officer was required to restrict the block assessment proceedings to recoveries in the course of search and not look into the income declared under the Voluntary Disclosure of Income Scheme, 1997. He had held that Rs.30,10,000/- was clearly reflectible and was a part of the disclosure of Rs.2,85,00,000/- made under the Voluntary Disclosure of Income Scheme, 1997.   9. The Revenue appealed aga....

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....hereby declared that- (a) the assessment made under this Chapter shall be in addition to the regular assessment in respect of each previous year included in the block period; (b) the total undisclosed income relating to the block period shall not include the income assessed in any regular assessment as income of such block period; (c) The income assessed in this Chapter shall not be included in the regular assessment of any previous year included in the block period.]" 11. Referring to the said Explanation, it has been held by the Division Bench in Shaw Wallace and Company Limited (supra) that both regular assessment as well as the block assessment can be continued separately. Undisclosed income is a subject matter of the block ....