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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 ..... and seizure operation under Section 132 of the Act was conducted on 3rd August 2000 by the Investigation Wing of the Department in the case of Manoj Agarwal, M/s Friends Portfolio Pvt. Ltd. ('FPPL') which admittedly had given bogus accommodation book entries to various persons. FPPL had given away its right to trade on the Stock Exchange to another company and, therefore, no genuine trading for any client was done by FPPL. In the course of the assessment proceedings of FPPL and Manoj Agarwal, it transpired that they were using the name and account of FPPL for the purposes of providing accommodation book entries. One of such persons who benefitted from such accommodation entry was found to be the Respondent Assessee i.e. M/s DPA Fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions made by the AO "nothing was brought on record to show that some evidence relating to these transactions was seized during search on Shri Manoj Agarwal". 6. It is contended by learned counsel for the Appellant that the interpretation placed by the ITAT on Section 158BB (1) of the Act is too narrow and it overlooks the words "and relatable to such evidence" which follows the words "evidence found as a result of search or requisition of books of accounts or other documents...." In other words, his contention is that if there is anything that emerges during the enquiry which can be said to be 'relatable' to the material unearthed during the search, then clearly the opinion to be formed by the AO cannot be restricted to merely wha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e: (i) whether issuance of notice under Section 143(2) of the Act within the prescribed time limit was mandatory for the purposes of the assessment under Section 143 (3) of the Act?; and (ii) whether certain additions made in that case under Section 68 of the Act ought to have been deleted?. An incidental issue that was examined was whether block assessment could have been made under Section 158BC without issuing notice under Section 143(3) of the Act? In that context, the Supreme Court discussed Chapter XIV-B under which Sections 158BB and 158BC fall, In para 12, the Supreme Court observed as under: "Chapter XIV-B provides for an assessment of the undisclosed income unearthed as a result of search without affecting the regular assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court. 10. In order to undertake a proper exercise in terms of Section 158BB(1), the AO will have to come to a definite conclusion that what emerges during the enquiry' following the search in the form of information or material is 'relatable to such evidence' as has been unearthed during the search. That exercise will of course vary from case to case. There has to be an application of mind by the AO to the information gathered, and an effort has to be made to relate such information or material to the evidence unearthed during the search. This Court in Harkaran Das Ved Pal (supra) explained as under: "The procedure under Chapter XIV-B is not intended as a substitute to regular assessment and its scope and ambit i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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