2000 (11) TMI 91

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.....---Heard learned counsel for the appellant. In this appeal, the appellant has challenged the order of the Income-tax Appellate Tribunal, dated May 24, 1999, setting aside the order of the assessing authority on the ground that the assessment made by the assessing authority for the block period 1986-87 to 1995-96 up to August 31, 1995, under section 158BB to the extent that it rejects the retur....

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....o section 158BB permitting resort to the provisions of sections 144 and 145 of the Income-tax Act, 1961. We are of the opinion that so far as the contention of learned counsel for the appellant that the Assessing Officer has necessary jurisdiction to resort to best judgment assessment in proceedings under section 158BB, the correctness of it cannot be doubted. However, under the scheme of the p....

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.... having nexus to assessment of "undisclosed income" which is with the assessing authority, and premise of such proceedings. If the returns filed by the assessee do not accord with the materials which are already in the possession of the authority, it can be estimated to the best judgment by the assessing authority on the basis of the material in his possession. However, the assessing authority is ....

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.... of undisclosed income is entertained by the assessing authority inviting invocation of sections 158BB and 158BC. The enquiry into the correctness of such returns with reference to material so found has nexus with the object of the special provisions, to adjudge whether the assessee is still honestly disclosing his income correctly after incriminating material has been found in the possession of t....