9911796707
TMI Blog2011 (11) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... o 1995-96), wherein the Tribunal by order dt. 27.1.2005 has set aside the order passed under Sec.l58BD of the Income Tax Act (hereinafter called as 'Act' for brevity) and also the appeal filed by the assessee. 2. The material facts leading up to this appeal are as follows: The assessee is a firm consisting of six partners. A search was conducted in the residential premises of Smt. V. Rukmini and Sri Sridhar, the partners of the assessee - firm. According to the Revenue since incriminating material were found against the assessee for receiving payment in respect of three contractors for which payment had been received by the firm, proceedings were initiated under Sec.l58BC R/w Sec. 158BD of the Act. Notice was issued on 13.1.1997 served on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s who had entrusted the contract to the assessee had deducted the tax at source and intimated the same to the Department. Therefore, it cannot be said that there is any undisclosed income. The Tribunal also held that the assessee was accounting under the completed contract method and same has been accepted in the regular assessment and returns have been filed for the block period. Even in the year 2001-02 the said method of accounting has been accepted by the Revenue and since the deduction has been made while making payment to the assessee, it cannot be said that the Department was not having any information about the payment. Wherefore, it cannot be termed as undisclosed income and accordingly, held that the order passed under Sec. 158BD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is made and original records have not been seized. Wherefore, there was no material, whatever to proceed against the assessee under Sec. 158BC R/w Sec.l5BD of the Act. However, as per the submission and material on record for making payment, there is deduction of tax at source and the same has been intimated to the Department. Wherefore, it cannot be said that the said income was undisclosed. However, in the return filed for all the years during the block assessment year the fact that the assessee had adopted completed contract method of accounting has been accepted and regular order of assessment has been passed. Wherefore, there was no undisclosed income and the order of the Tribunal is unassailable. 6. We have given careful consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h is not based upon any material on record. Wherefore, though the Revenue has all along proceeded on the basis that the incriminating materials were found while making search in the house of Smt. Rukmini and the partner of the assessee-firm which discloses that assessee has not disclosed the entire income and certain income were undisclosed. The original records produced would clearly show that the said contention was clearly baseless and there was no material, whatever to arrive at the conclusion in order to initiate proceedings under Sec. 158 BC R/w Sec. 158 BD of the Act. However, the material on record would clearly show that the said firms which have made payment according to the Revenue, to the assessee, have deducted the tax at sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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