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TMI Blog2011 (11) TMI 491X X X X Extracts X X X X X X X X Extracts X X X X ..... nt made to the assessee and deduction of tax made at source the said income cannot be said in be undisclosed. Further as no returns were filed in the block period, material on record reveals that returns have been filed in the block period. Therefore, tribunal has rightly annulled order passed u/s 158BD - Decided in favor of assessee. - IT Appeal NO. 2608 OF 2005 - - - Dated:- 24-11-2011 - V.G. SABHAHIT AND S.N. SATYANARAYANA, JJ. E.R. Indrakumar and E. Sanmathi Indrakumar for the Appellant. Sriyuths A. Shankar and M. Lava for the Respondent. JUDGMENT 1. This appeal is taken up for final hearing for consideration of substantial questions of law framed by order dt. 6.2.2006. This appeal is filed by the Revenue being ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the work was in progress and work had not been completed, no tax was paid and accepting the said method of accounting, order of assessment has been passed in the respective years. It was also contended that no incriminating material was found against the assessee and initiation of proceeding's was without jurisdiction. However, the Assessing Officer rejected the explanation offered by the assessee and passed the order holding that there was undisclosed income as the assessee had suppressed the said receipt of amount towards the three contracts which have been executed by it and accordingly passed the order on 30th October 1998. 3. Being aggrieved by the same the assessee preferred appeal before the Tribunal and the Tribunal by im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd since incriminating material were found during search, block assessment period has been rightly adopted and assessee did not show the income though completed method of accounting has been accepted and what is shown in the return is that contract is in progress. It is further submitted that merely because deduction has been made at source while making payment to the assessee, the same would not amount to the information available with the Department. Wherefore, the finding of the Assessing Officer which is based upon the abovesaid material on record, was justified and Tribunal was not justified in setting aside the order passed by the Assessing Officer. 5. On the other hand, the learned counsel appearing for the respondent submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to purchaser would clearly show that no incriminating material as such against the assessee has been seized and we find only the inventory of the material found against the assessee. Inventory is nothing but the index of the documents found. Wherefore, in the absence of actual documents which were incriminating against the assessee for having undisclosed income, there was no material whatsoever to initiate proceedings against the assessee under Sec. 158BC R/w Sec. l58BD of the Act. The inventory by itself would not be an incriminating material in the absence of the seizure of the material which is mentioned in the inventory, apart from that there is no other material whatsoever incriminating and the statement of the partner would not by it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he said reasoning of the Tribunal is also justified. 8. The material on record would clearly show that though it is argued that no returns were filed in the block period, returns have been filed in the block period. However, since the completed contract method of accounting was adopted and accepted by the Department while passing the order of assessment, the tax has been paid on the said income. Wherefore, no tax had been paid in respect of the relevant year. The Tribunal has also observed that even for the assessment year 2001-02 the work was in progress and the information given by the assessee that completed contract method of accounting has been adopted by the assessee, has been accepted by the Revenue and it does not mean that work ..... X X X X Extracts X X X X X X X X Extracts X X X X
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