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TMI Blog2015 (7) TMI 918X X X X Extracts X X X X X X X X Extracts X X X X ..... thed during the search. In the instant case, nothing has been brought on record by AO to show that any information or material that he came across during the enquiry was in fact 'relatable' to the solitary accommodation entry which was unearthed during the search. In the circumstances the conclusion of the CIT (A) that there was no justification in the AO simply adding the credit entries which according to him were not explained by the Assessee cannot be faulted. - Decided in favour of assessee. - ITA No. 228/2014 - - - Dated:- 20-7-2015 - S Muralidhar And Vibhu Bakhru,JJ. For the Appellant : Mr Raghvendra Singh, Junior Standing Counsel for Mr Kamal Sawhney, Senior Standing counsel For the Respondent : Mr Piyush Kaushik, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading for any client was done by FPPL. 3. In the order dated 30th March 2005, the Assessing Officer ('AO') concluded that entries in the aforementioned account totaling ₹ 33,75,949 could not be explained by the assessee company . Accordingly, they were treated as unexplained credit under Section 68 of the Act. Penalty proceedings under Section 15SBFA (2) were also initiated. 4. The aforementioned order was overturned by CIT (Appeals) by the order dated 22nd February 2010 by holding that the additions made were based on transactions which are not related to any evidence collected during the course of search proceedings of the main person . In other words, it was held that all the additions made were ''basicall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. According to him the entries for which explanation was sought had no connection either with Mr. Manoj Agarwal or FPPL and, therefore, could not be said to be relatable to a single accommodation entry that was unearthed during the search. Relying on the decision in CIT v. Blue Chip Construction Co, (P) Ltd. 213 CTR (Del) 530, it is submitted that the unexplained entries in the books of accounts of the Assessee could be dealt with only in the regular assessment proceedings under Section 143 of the Act and not in the block assessment proceedings. He sought to draw a distinction between unexplained' income and 'undisclosed' income which was a sine qua non for Section 158BB of the Act to apply. Reliance is also placed on the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h has been detected as a result of search. It is not intended to be substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of accounts or documents and such other materials or information as are available with the AO. Therefore, the income assessable in block assessment under Chapter XIV-B is the income not disclosed but found and determined as a result of search under S. 132 or requisition under S. 132A of the Act . 9. Although in the above background the Supreme Court observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, clear that the undisclosed income, which is to be determined under Chapter XIV-B, has to be determined on the basis of evidence discovered during the search. It is obvious that where the computation of undisclosed income is based on material other than what was found in the course of the search, the same could not be treated as undisclosed income determined under cl. (c) of Section I58BC 11. In coming to the above conclusion, this Court followed its earlier decision in CIT v. Ravi Kant Jain 250 ITR 141. 12. In the instant case, nothing has been brought on record by AO to show that any information or material that he came across during the enquiry was in fact 'relatable' to the solitary accommodation entry which was u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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