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TMI Blog2005 (9) TMI 550X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee-company itself." 2. The only issue involved in this appeal is the addition on account of unaccounted commission of Rs. 22,58,675 and addition of Rs. 2,91,496 being unaccounted commission earned out of suppressed receipts. The above additions are made to the income of the assessee in the block assessment order on substantive basis and in regular assessment on protective basis. In the assessment order, the Assessing Officer rejected the books of account on the ground that necessary bills and vouchers/invoices, confirmations from third parties etc. were not produced by the assessee because of non-availability of details. It was inferred that it was not possible to deduce the income correctly, hence, the books were rejected and profits were estimated. The assessee is dealing in hiring of tankers. The total turnover was shown at Rs. 2,15,11,192. On this, the Assessing Officer applied gross profit rate of 15 per cent and estimated the commission at Rs. 32,26,679. After allowing expenses of Rs. 9,68,004, undisclosed income was estimated at Rs. 22,58,675. In respect of gross receipts from hiring of tankers, the assessee had submitted details during the block assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings various details relating to the business of the assessee were requisitioned, scrutiny of the details reveal that assessee-company had been showing commission income out of tanker hire business. Further vide page 7 of the assessment order, Assessing Officer has asked the assessee to furnish the number of tankers, volume of business, commission receipts, expenses claimed for assessment years 1989-90 to 1999-2000. The fact of the matter is that these details relating to receipt of commission and details of expenses against commission had been already filed by the appellant while filing returns of income before date of search and have been again filed in the course of block assessment proceedings. The Assessing Officer has simply analysed these details and has rejected the books of account and has estimated the commission income @ 15% on the volume of business which has already been disclosed by the appellant in the regular books of account and that too before date of search. Thus, there is not a single reference to any seized material in the assessment order in the case of the appellant by the Assessing Officer for any of the assessment years falling within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided in the Explanation to section 158BB that assessment under Chapter XIV-B shall be in addition to regular assessment. Thus, there are two categories of assessments. One is regular assessment and other is block assessment. Each category of assessment provides inclusion of undisclosed income therein. A perusal of section 148/147 and that of Chapter XIV-B indicates that there are two domains of undisclosed income. One is relating to money, jewellery, valuable, articles or things and other undisclosed income based on any entry in the books of account or other documents or transactions on the basis of evidence found as a result of search or requisition of books of account under section 132A. Such undisclosed income would fall in the block assessment. Other domain of undisclosed income is the one which is discovered as a result of enquiry or investigation other than search, in the proceedings initiated under section 131, 133A, 133, 142(1), 143(2) or 142(1A), 147/148. The undisclosed income falling in this domain will suffer tax at normal rates as prescribed in the yearly Finance Act and also suffer interest and penalty as provided under sections 234A, 234B, 234C, 271(1)( c ), 271B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er shall be in addition to the regular assessment in respect of each previous year included in the block period; ( b )the total undisclosed income relating to the block period shall not include the income assessed in any regular assessment as income of such block period; ( c )the income assessed in this Chapter shall not be included in the regular assessment of any previous year included in the block period. (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." 9. This Explanation provides that if an income is assessed in this Chapter then, it shall not be included in regular assessment. This is clearly the intention of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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