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TMI Blog2011 (1) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... ring for the Revenue and Shri.Arun Raj, learned counsel appearing for the respondent assessee. 3. Return filed by the assessee for the assessment year 1992-93 was initially processed under Section 143(1)(a) and thereafter a scrutiny assessment was made under Section 143(3) of the Act. A search was carried out in the residential and business premises of the assessee on 25/11/1998 and block assessment under Section 158BC was made for the block period from 01/04/1988 to 25/11/1998. In the block assessment specific additions were made for the assessment year 1992-93 representing arbitration award amount received by the assessee and also interest on various Bank deposits maintained in the name of assessee's relatives. It is pertinent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT (Appeals)'s order, the Assessing Officer initiated proceedings under Section 147 and income escaping assessment was made for the assessment year 1992-93 assessing the deposit amounts in the six Bank deposits maintained in the names of assessee's relatives, details of which were collected in the course of search made under Section 132 of the Act, as escaped income of the assessee. 5. When the assessee filed appeal against the income escaping assessment completed under Section 147, the CIT (Appeals) cancelled the same for the reason that addition of same amounts were considered while making block assessment and after dropping the proposal to assess the deposit amounts as undisclosed income, only interest from such deposits were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 i.e. the amount covered by deposit receipts maintained in Banks, were considered in the block assessment and at that time, the Assessing Officer treated only interest income as income of the assessee and not the deposit amounts as such, as undisclosed income of the assessee. However, when the CIT (Appeals) cancelled the block assessment holding that Bank deposits were that of family members of the assessee and therefore interest income therefrom could not be assessed in his hands, the Assessing Officer tried to bring to tax the deposit amounts itself by invoking the powers under Section 147 of the Act. Even though block assessment under Section 158BC and income escaping assessment under Section 147 can probably be made for the same period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for the block period. In appeal the CIT (Appeals) cancelled the assessment on interest income. We are of the view that the Assessing Officer cannot after cancellation of block assessment by the CIT (Appeals) proceed to make an income escaping assessment for assessing the very same Bank deposits as escaped income. We do not think the Assessing Officer has jurisdiction to assess the very same amount, which was considered and given up while making block assessment. Even though learned standing counsel submitted that deposit amounts were not considered in block assessment, we cannot accept it because when interest from the same deposits were assessed as undisclosed income of the block period, it can be legitimately assumed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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