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Issues Involved:
The issues involved in the judgment are: 1. Interpretation of u/s 158BG of the Income-tax Act regarding the Commissioner's hearing requirement. 2. Computation of the block period u/s 158B of the Act. 3. Application of the period of limitation u/s 158BE(1)(a) for completing assessment. 4. Treatment of cash credits u/s 68 of the Act in the books of the assessee. Interpretation of Section 158BG: The appellant challenged the assessment made after a search, arguing that the Commissioner needed to give a hearing before approving the assessment order u/s 158BG. However, the court held that the Commissioner's approval does not require a separate hearing as the assessment order must be made after giving an opportunity to the assessee. The Tribunal's view on this section was deemed correct. Computation of Block Period under Section 158B: The appellant contended that the block period should include the year of search and nine preceding years based on the wording of the definition in section 158B. The court analyzed the definition and concluded that the block period comprises the ten previous years preceding the year of search, plus the period up to the date of the search in the year of search. The Tribunal's computation of the block period was upheld. Application of Limitation Period under Section 158BE(1)(a): Regarding the period of limitation for completing assessment u/s 158BE(1)(a), the appellant argued that the Tribunal exceeded its authority by remanding the matter after the one-year limit from the date of search had passed. The court clarified that the limitation is for the Assessing Officer's assessment and does not restrict the appellate authority's power to modify or remit the assessment order. The Tribunal was justified in directing a reassessment for certain items. Treatment of Cash Credits under Section 68: The appellant contended that cash credits in the books should be accepted under the head they were made. However, the court upheld the Tribunal's decision that unexplained cash credits could be treated as the assessee's income u/s 68 if no satisfactory explanation was provided. The Tribunal's acceptance of the Assessing Officer's treatment of such credits was deemed appropriate and legal. In conclusion, the court dismissed all submissions made by the appellant, upholding the Tribunal's decisions on the interpretation of relevant sections of the Income-tax Act and the treatment of cash credits, leading to the dismissal of the appeal.
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