TaxTMI 
TaxTMI 
2007 (4) TMI 181
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....1.1998. The assessee is a Hindu Undivided Family (in short 'HUF'). A search under Section 132 of the Income Tax Act was carried out at the residential and business premises of the Karta of the HUF, viz. Ratanshi Patel and his brother Khimji M Patel between 5.11.1998 and 30.11.1998. During the search, it was found that HUF assessee had a timber trading business by name Ram Plylam during the assessment years 1996-97, 1997-98 and 1998-99. The materials seized indicated that the assessee had also undisclosed income from the business and therefore, notice under Section....
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.... to Sri Raghuveer Timbers and Sri Muralikrishna & Co., as there was no indication in the seized materials about the suppression of sales by the business concern of the assessee, viz. Ram Plylam and that the Assessing Officer was not correct in invoking Section 158BD of the Act. It was further held that the Assessing Officer had not computed the undisclosed income based on the materials, but merely on the basis that the family members of the assessee had moved before the Settlement Commission disclosing additional income by offering gross profit at 8% and held that the same cannot be a valid reason f....
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....on was arrived at during the block assessment of the related concerns?" 6. Concededly, the seized materials did not relate to the assessee. On the other hand, what is contemplated under Section 158BB is that the undisclosed income shall be computed only in accordance with the provisions of the Act on the basis of evidence found as a result of search and such other material or information which are relating to such material. If the material seized do not, in any way, connects the assessee indicating that the assessee had any undisclosed income, it ma....