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TMI Blog2014 (4) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Tribunal - the AO has option to proceed against the assessee by issuing notice u/s 148 of the Act – Decided against Assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... that was disclosed in the fax was Rs.12,52,750/-. On the basis thereof, it was revealed that the amount disclosed by the assessee in his return, having received from Monalisa, was only Rs.4,97,417/-. In this backdrop, the Assessing Officer issued notice under Section 148 of the Act, reopening the assessment for the assessment years 1996-97, 1998-99 and 1999- 2000 and added the amount of Rs.37,59,689/- for the assessment year 1996-97, Rs.6,05,000/- for the assessment year 1998-99 and Rs.7,16,642/- for the assessment year 1999-2000. The Tax liability, on the basis of the additions was determined as Rs.19,58,498/-, Rs.3,75,357/- and Rs.3,95,147/- respectively. This order was challenged by the assessee in appeals before CIT(A). The CIT(A) confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 of the Act. In short, he submitted that having found the evidence regarding undisclosed income during search, the only option open to the Assessing Officer was to invoke block assessment under Chapter XIV-B of the Act. 5. It is true that Section 158BD states that where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under Section 132, then the books of accounts, other documents or assets seized shall be handed over to the Assessing Officer having jurisdiction over such other person and that the Assessing Officer shall proceed under Section 158BC against such other person and the provisions of these Chapter shall apply accordingly. This provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver such other person in respect of whom the undisclosed income has been disclosed for block assessment. Thus, it is open to the Assessing Officer to proceed against the assessee, if he has reason to believe that his income has either escaped the assessment or whose undisclosed income is unearthed during the search conducted under Section 132 of the Act of the premises of some other person. From plain reading of these provisions, we do not find any impediment in proceeding against such person by issuing notice under Section 148 of the Act. In other words, Chapter XIV-B do not preclude the Assessing Officer to proceed against such assessee by issuing notice under Section 148 of the Act. The remedies, available to the Assessing Officer, under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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