TaxTMI 
TaxTMI 
2013 (12) TMI 1319
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.... law have been raised for consideration by the Court:- "1. Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in law in holding that payment of Rs. 2, 60, 000/- were not made by the assessee to the owner of the plot, without appreciating the fact that it was supported by documentary evidence seized during the course of search in the form of 'kabza nama'. 2. Whether on the facts and in the circumstances of the case the Hon'ble ITAT was justified in law in holding that there was no unexplained investment in the construction of property without appreciating the report of a technically expert body namely the Valuation Cell, working out the unexplained investment of Rs. 9, 56, 607/-, even if no evidence w....
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....plained investment in the construction and payment to the owner of the plot) after taking approval from the Commissioner of Income Tax (Central) under Section 158 BC of the Act. 5. The assessee filed an appeal before the Income Tax Appellate Tribunal, which is the first appellate authority in the search cases. The Tribunal by its order dated 29.5.2001 disallowed the entire addition on the grounds that the amount shown in the possession letter 'kabzanama' was not paid by the assessee to the owner of the plot, but it was the liability towards Kanpur Development Authority and other Government departments, which was undertaken by the assessee. The Tribunal also accepted the assessee's explanation that the assessees were not party to the 'kabza....
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....ile deciding question no.3 the Bombay High Court held as follows:- "Question No. 3 reads as follows : Question No. 3: Whether in law, on the facts and in the circumstances of the case, the Tribunal was justified in deleting the addition of Rs. 2,49,350 made on account of unexplained expenses in construction of the residential bungalow at Jaysingpur, when the same was properly made by the assessing officer. The said question refers to addition of Rs. 2,49,350 made on account of unexplained expenses in construction of residential bungalow by the assessee. Here also, Chapter XIV-B has no application. The Tribunal, rightly, found that the addition is made on the basis of the report of the department Valuer, According to the assessing officer....
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.... Act, 2002, has amended s.158BB to clarify that the block assessment of undisclosed income is to be based on the evidence found in the search and material or information gathered in post-search inquiries made on the basis of evidence found in the search." 9. The Court in CIT v. Ravi Kant Jain (Delhi), (2001) 250 ITR 141 held that the special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. Its scope and ambit is limited in that sense to materials unearthed during search. The department could not have relied upon report of the special auditors, who had given different colour to existing facts and which stood assessed in earlier assessment orders. 10....