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TMI Blog2015 (10) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... ch action. The mere observation that the decision given by the Tribunal should not be construed as an authority for the proposition that the disallowance of foreign travelling expenses cannot be made at all in regular assessment of income or on the basis of statement recorded by the directors, was a general observation to the effect that the decision given by the Tribunal in respect of block assessment years should not be taken as a precedent in regular assessment proceedings. Neither any direction was given by the Tribunal for assessing the foreign travelling expenses afresh, nor for reopening of any assessment. A perusal of the said explanation 2 to section 153 of the Act reveals that the said explanation is also not applicable to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable in this case and the reassessment is barred by limitation by ignoring the provisions of section 150(2) of the Act and also the fact that the Block Assessment was completed on 28.01.2000 and at that time the assessment for A.Y. 1995-96 could have been reopened u/s 147 of the Act as the time limit had not expired at that time. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in holding that the ITAT in its order in IT(SS)A No.714/MUM/2002 dated 11 .04.2007 has not given any direction or finding that the disallowance of ₹ 3,20,277/- under the head 'Foreign Travel Expenses' and disallowance of ₹ 2,00,000/- uls.40A(3) can be assessed in regular assessment for A.Y. 1995-96. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f foreign travel expenses on the facts of this case do not constitute undisclosed income, and must therefore be taken out of income taxable under the block assessment. As we do so, however, we make it clear that this decision should not be construed as an authority for the proposition that the disallowance of foreign travel expenses cannot be made at all, in the regular assessment of income as well, on the basis of statement recorded by the directors. We are at present only concerned about the connotations of undisclosed income under the scheme of block assessment, and we leave it at that. We, therefore, direct the Assessing Officer to delete the disallowance of ₹ 21,66,652 which was offered under protest by the assessee in his retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and circumstances of the case and further relying upon various decisions of the higher courts, observed that the findings given by the Tribunal could not be treated as directions under section 150(1) of the Act, hence, the reopening was barred by limitation. He also held that the reopening, otherwise, was bad in law. Aggrieved from the order of the CIT(A), the Revenue has preferred the present appeal before the Tribunal. 8. We have heard the rival contentions of the ld. representatives of both the parties and have also gone through the records. The relevant findings of the ld. CIT(A) holding that the observations of the Tribunal, as reproduced above, cannot be treated as direction under section 150(1) of the Act are reproduced as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the block assessment holding that such additions cannot be made in the block assessment as there was no incriminating material found during the search action. The mere observation that the decision given by the Tribunal should not be construed as an authority for the proposition that the disallowance of foreign travelling expenses cannot be made at all in regular assessment of income or on the basis of statement recorded by the directors, was a general observation to the effect that the decision given by the Tribunal in respect of block assessment years should not be taken as a precedent in regular assessment proceedings. Neither any direction was given by the Tribunal for assessing the foreign travelling expenses afresh, nor for reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X
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