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Issues Involved: The validity of the search and consequential additions to the assessee's income.
Validity of Search: The assessee challenged the validity of the search proceedings based on the contention that the search warrant was issued in the name of both the assessee and his wife, suggesting that the assessment should have been made jointly as an AOP or BOI. The assessee relied on the judgment of the Hon'ble High Court of Karnataka in a specific case where it was held that an order of block assessment on an individual assessee is invalid if the authorization for search is issued in more than one name. The argument was supported by a similar decision of the Hon'ble Allahabad High Court. The learned DR argued that the joint warrant did not imply an AOP status for the assessee and his wife. The Tribunal referred to the decision of the Hon'ble jurisdictional High Court in a previous case where it was held that assessments in individual hands are improper when the authorization is issued in joint names. Consequently, the Tribunal set aside the assessments, ruling in favor of the assessee. Consequential Additions to Income: Following the search action and issuance of notice u/s 153A, the assessee filed a revised return of income excluding certain portions that were erroneously offered in the original return. However, the AO made additions to the income, stating that the earlier declared income should be considered for computation purposes. The CIT(A) enhanced the income for certain assessment years. The assessee appealed, challenging both the validity of the search proceedings and the additions made to the income. The Tribunal, having decided in favor of the assessee on the issue of search validity, did not delve into the other issues raised by the assessee on merits. Consequently, the appeals filed by the assessee were allowed, and the assessments in individual hands were set aside. This judgment by the Appellate Tribunal ITAT Bangalore addressed the issues of the validity of the search proceedings and consequential additions to the assessee's income for the relevant assessment years. The Tribunal's decision was based on the interpretation of the search warrant issued in joint names and the legal implications thereof, as established in previous judicial precedents.
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