TaxTMI 
TaxTMI 
2012 (5) TMI 333
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.... has submitted his return and on search of the premises of one Gopalakrishna, it was found that the assessee has received certain payment pertaining to J.S.S. College, Police Training College, House Building Society, Mysore and accordingly notice was issued to the assessee and proceedings were initiated under Sections 158-BC read with section 158-BD of the Income-tax Act, 1961 (hereinafter referred to as the "Act" for short). It was contended by the assessee that in response to the notice no incriminative material was found against the assessee and in the search made in the premises of Gopalakrishna and there was no basis for initiating proceedings under Sections 158-BC read with section 158-BD of the Act. It was also contended that in resp....
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....de deposits on 28.06.1986 and 17.06.1986 and on the date of maturity of this fixed deposits-, on 28.6-1997 and 17.06.1987 a sum of Rs. 50,000/- each had been received in all a sum of Rs. 1,50,000/-which was not disclosed in the return of income and in view of the presumption contemplated under Section 132 of the Act which has not been rebutted by the assessee the same was correctly treated as the income of the assessee and consequently recorded a perverse finding? 2. Whether the Tribunal was correct in holding that M/s. Rukmini Combines, the firm which had advanced amounts for production of films of Rs. 16,00,000/- and Rs. 12,49,566/-, Rs.5,50,000/- and Rs. 1,49,079/- cannot be treated as the income of the assessee who was a pa....
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....y recorded a perverse finding? 6. Whether the Tribunal was correct in proceeding to hold that the completed contract method of accounting should be adopted in the facts of the assessee's case and the entire income received during the block period cannot be brought to tax as the work had not been completed during the block period. When admittedly in respect of assessment year 1987-88 the assessee had filed a return of income in the status of HUF declaring part of the income received indicating it was following cash system of accounting? 7. Whether the Tribunal took into consideration irrelevant facts and circumstances in proceeding to hole the various incomes detected after search cannot be brought to tax by not tak....
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....ial on record. It is well settled that when the proceedings are initiated under Sections 158-BC read with 158-BD of the Act, the order of assessment can be made only upon the material found during search against the assessee as regular assessment would have already been made and the assessment under Sections 158-BC read with 158-BD of the Act would be an additional assessment based on the material found during search and the decision relied upon by the Assessing Officer cannot go beyond the material found during search. In the present case, it is clear from the scrutiny of the material on record that while search was conducted in the house of Gopalakrishna, certain materials was found which reveal that the assessee had not disclosed the inc....