TaxTMI 
TaxTMI 
2022 (7) TMI 398
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....brevity, 'ITAT') in IT(SS)A.No.100/Mds/2004, for the block assessment period from 01.04.1991 to 06.02.2001. 2. The respondent/assessee is a company engaged in the business of refining and trading of edible oils. On 06.02.2001, a search under Section 132 of the Income Tax Act, 1961 (in short, "the Act") was conducted at the business premises as well as residential premises of the respondent/assessee, as a result of which, action under section 133A was initiated. Consequently, notice dated 23.03.2001 under Section 158BC of the Act was issued, to which, the respondent/assessee filed its return of income in Form 2B, on 10.08.2001, declaring the undisclosed income of Rs.47.21 Lakhs. On the basis of the materials collected during the c....
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.... of survey which was converted to a search on the same day could not be used in the block assessment?" 6. According to the learned senior standing counsel appearing for the appellant/revenue, any material or evidence found / collected in a survey which has been simultaneously made at the premises of a connected person, can be utilized, while making block assessment in respect of an assessee under section 158 BB read with section 158 BH, in the light of the decision of the Hon'ble Supreme Court in CIT v. S.Ajit Kumar [(2018) 93 taxmann.com 294 (SC)]. However, the Tribunal erred in holding that the material gathered in the course of survey are to be treated as disclosed for the purpose of Income Tax Act and it cannot be used for comput....
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....the IT Act. It would be appropriate to re-produce the relevant part of Sections 158BB and 158 BH of the IT Act which is as follows: "158BB. Computation of undisclosed income of the block period.-(1) The undisclosed income of the block period shall be the aggregate of the total income of the previous year failing within the block period computed, in accordance with the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence, as reduced by the aggregate of the total income , or, as the case may be, as increased by the aggregate of the losses of su....
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....ovisions are devised to operate in the distinct field of undisclosed income and are clearly in addition to the regular assessments covering the previous years falling in the block period. The special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. It is not intended to be a substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of accounts or documents and such other materials or informati....