2014 (11) TMI 943

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....t tax appeal. 2. This appeal was admitted by this Court on 09.10.2000 for consideration of the following substantial questions of law:              "(1) Whether the Appellate Tribunal is right in law and on facts in in entertaining and allowing the application filed by the assessee under section 254(2) of the Income tax Act,1961 and holding that amount of Rs. 13,62,865/- was not undisclosed income and further directing the assessing officer to assess the said amount while framing regular assessment for the assessment year 1995-96? (2) Whether inclusion of proposed amount of Rs. 13,62,875/- as undisclosed income for the block period is barred by Explanation (b) below sub-section ....

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.... submitted that the Tribunal has erred in allowing M.A. Application of assessee u/s 254 holding that an amount of Rs. 1362865/- was not an undisclosed income of assessee which has been discussed at length. He submitted that the 158BD proceedings are just and proper in the facts and circumstances of the case. 3.1 Mr. Mehta has relied upon the decision of this Court in the case of N.R. Paper & Board Ltd. vs. Deputy Commissioner of Income-tax reported in [1998] 234 ITR 733 wherein it is held that there is no overlapping in nature of assessment made under Chapter XIV-B of undisclosed income and regular assessment made under section 143(3) and these provisions operate entirely for different purposes, one of assessing undisclosed income of block....

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....n showing income of Rs. 14,64,657/- on 16.01.1996 including capital gain taking the sale price of land at Rs. 1821101/-. However, the notice was issued on 22.01.1997 u/s 158BD of the Act which means the assessee filed his revised returns prior to the date of receipt of notice. 6. The Tribunal has observed in para 8 of the impugned order as under:                "8. ... However a perusal of assessment order passed indicates that the Block period for the purpose of assessment has been taken as the period ending 5-1-1996 which is the date of search in the case of Shri B.B. Solanki (father of the assessee) and the assessee and the contention of the learned representative of....