2014 (8) TMI 43

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....ed on the same, the assessing authority made a block assessment for a period of five years covering 1993-94 to 1997-98. Various items which were said to have been suppressed were shown in the block assessment. 2) The respondent filed fresh returns showing undisclosed income of Rs. 18,45,000/- and expressed willingness to pay tax thereon. However, the assessing authority did not agree with that. He passed a detailed order of assessment dated 28.11.1997, covering the entire block period. The net additions were shown at Rs. 1,33,69,570/-. The penal tax of Rs. 80,21,742/- under Section 158BA read with Section 113 of the Act at the rate of 60% was levied. The tax paid for the corresponding period being Rs. 5,00,000/- was given credit to and the....

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....ures were shown beyond any reasonable proportion. He submits that the departmental representative himself has indicated that the undisclosed income to be taken at Rs. 50,00,000/- and the appellant cannot plead to the contrary. Learned counsel further submits that whatever may be the method of application of Section 69 of the Act in the regular assessments, a different approach is warranted when it comes to the question of block assessments. 6) The block assessment against the respondent was made under Chapter-XIVA of the Act. Though the method of arriving at the conclusions and the figures may differ in such an exercise, ultimately the procedure that is followed for the making allowances and other aspects is required to be the same, as tho....

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....e-stated that the income would be the result of an investment or turnover. If any undisclosed income of an assessee is noticed; Section 69 prescribes the procedure, to be followed. It reads: "69. Unexplained investments: Where in the financial year immediately preceding the assessment year the assessee has made investments which are not recorded in the books of account, if any, maintained by him for any source of income, and the assessee offers no explanation about the nature and source of the investments or the explanation offered by him is not, in the opinion of the 2 Assessing] Officer, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year." 10) Once an assessing authority noti....