2008 (4) TMI 306

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....ed in the premises of the assessee who is a medical practitioner, on October 27, 1995. Based on the materials gathered, assessment was made for the entire block period which included the income assessable for the assessment year 1995-96. In the appeal filed by the assessee, the Tribunal noticed that the time for filing the return for the assessment year 1995-96 was extended by the Central Board of Direct Taxes, till October 31, 1995, and, therefore, the assessee had time to file the return for the assessment year 1995-96 as on the date of search. It, therefore, allowed the assessee's claim by deleting from the income assessed for the block period so much of the income returned by the assessee and assessed for the year 1995-96 by granting th....

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....ch.-. . . (3) Where the assessee proves to the satisfaction of the Assessing Officer that any part of income referred to in sub-section (1) relates to an assessment year for which the previous year has not ended or the date of filing the return of income under sub-section (1) of section 139 for any previous year has not expired, and such income or the transactions relating to such income are recorded on or before the date of the search or requisition in the books of account or other documents maintained in the normal course relating to such previous years, the said income shall not be included in the block period." "158BB. Computation of undisclosed income of the block period.- (1) The undisclosed income of the block period shall be the ....

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....ssessment year 1995-96. The question is whether on these facts, the assessee is entitled to the exclusion of income returned for the assessment year 1995-96 in the block assessment. 5. We find from a combined operation of the above two provisions that income of the previous year for which time for filing the return was not over as on the date of search, could be excluded only if such income or transactions pertaining to such income are recorded in the books of account or other documents maintained in the normal course of business on or before the date of search. Therefore, exclusion can be granted for the income of the previous year, in respect of which time for filing the return was not due or not over, only if the assessee is found to ....