2018 (5) TMI 266

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....inst the impugned judgment and order dated 22.11.2006 passed by the High Court of Judicature at Madras in Tax Case (Appeal) No. 2620 of 2006 whereby the Division Bench dismissed the appeal filed by the appellant herein while upholding the decision passed by the Income Tax Appellate Tribunal (for short "the Tribunal") dated 28.04.2006. Along with this appeal, other appeals are also tagged. Since the moot question in all these appeals is same, all these appeals would stand disposed off through this common judgment. Brief facts:- Civil Appeal No. 10164 of 2010 2) In order to appreciate the facts of the present case in the appropriate manner, purpose would be served if we mention the facts in a summarized way which is as under:- ....

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....before the Tribunal by way of an appeal. The Tribunal, vide order dated 28.04.2006, set aside the decisions of the Assessing Officer and learned CIT (Appeals) and allowed the appeal. g) Being aggrieved, the Revenue filed an appeal before the High Court. The High Court, vide order dated 22.11.2006, dismissed the appeal. 3) Consequently, the Revenue has filed this instant appeal before this Court. 4) Heard the arguments advanced by learned senior counsel for the parties and perused the relevant records of the case placed before us. Point(s) for consideration:- 5) The short point for consideration which arises in this appeal is as to whether in the light of present facts and circumstances of the instant case, the material ....

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....niappan 284 ITR 220. It was also submitted that the fact of cash payment found in survey conducted at the premises of M/s ECIL does not fall within the ambit of Block Assessment. Learned senior Counsel has relied upon the following decisions, viz., Commissioner of Income Tax vs. S. Ajit Kumar (2008) 300 ITR 152 (Mad.), Commissioner of Income Tax vs. N.K. Laminates Pvt. Ltd. (2014) 365 ITR 211 (All.), Commissioner of Income Tax vs. Bimal Auto Agency (2009) 314 ITR 191 (Gauhati), Commissioner of Income Tax vs. Khushlal Chand Nirmal Kumar (2003) 263 ITR 77 (MP), Commissioner of Income Tax vs. Dr. Rattan Kumar Singh (2013) 357 ITR 35 (All.), Commissioner of Income Tax, Chennai vs. S. V. Sreenivasan (2017) SCC Online 17211 (Mad.), Commissione....

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.... the undisclosed income of the assessee in block assessment. 10) In the instant case, the office and residential premises of the assessee searched on 17.07.2002 and finally concluded on 21.08.2002. During the course of search, certain evidence were found which showed that the assessee had indulged in understatement of his real income relating to the block period from 01.04.1996 to 17.07.2002. Consequently, a notice dated 25.02.2003, under Section 158BC of the IT Act, was issued to the assessee and he was asked to file block assessment. In reply to such notice, the assessee filed return on 11.08.2003, admitting the undisclosed income as "NIL". 11) In the present case, it is admitted position that the cost of investment was disclosed to....

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....disclosed income of the block period, it can be calculated only on the basis of evidence found as a result of search or requisition of books of accounts or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence. Section 158BB has prescribed the boundary which has to be followed. No departure from this provision is allowed otherwise it may cause prejudice to the assessee. Needless to say that it is the cannon of tax law that it should be interpreted strictly. 14) However, Section 158BH of the IT Act has made all other provisions of the IT Act applicable to assessments made under Chapter XIVB except otherwise provided under this Chapter. Chapter XIV B of the IT ....

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.... "158-BH. Application of other provisions of this Act.- Save as otherwise provided in this Chapter, all other provisions of this Act shall apply to assessment made under this Chapter." This is an enabling provision, which makes all the provisions of the Act, save as otherwise provided, applicable for proceedings for block assessment. The provisions which are specifically included are those which are available in Chapter XIV-B of the Act, which includes Section 142 and sub-sections (2) and (3) of Section 143." 15) The power of survey has been provided under Section 133A of the IT Act. Therefore, any material or evidence found/collected in a Survey which has been simultaneously made at the premises of a connected p....