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TMI Blog2016 (4) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... her different premises and the locker being in the name of Smt. Ponam H. Keshwani as the first holder, the said jewellery cannot be considered in the block assessment of Shri Harish A. Keshwani, the assessee. We, accordingly, order deletion of ₹ 2,21,782/- on account of jewellery and silver utensils found in locker no. 270.- Decided in favour of assessee Addition on account of household goods - Held that:- Without any material found during the course of search to show that the assessee had made unexplained investment or had incurred unexplained expenditure, it could not be held that the assessee has earned any undisclosed income which was spent for making such investment or expenditure. In the case of Pooja Bhatt v. Assistant Commissioner (1999 (5) TMI 603 - ITAT MUMBAI ), the Mumbai Bench of the Tribunal has held that block assessment is separate and distinct from regular assessment and in the block assessment, addition can be made only on the basis of material found during the course of search. As such, considering the facts of the case and keeping in view the legal position emanating from the aforesaid judicial pronouncements, we are of the view that the additions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition on account of household goods found during the course of search operations. In the case of Haresh Bhai Ashumal Bhai Keshwani, the investment in household goods amounting to ₹ 1,50,000/- was found. The search party made inventory of household goods like air conditioner, fridge, television sound/music system etc. and estimated their value at ₹ 1,50,000/-; and made addition in the entire block period without any reference to relevant assessment year comprised in the block period. During the course of assessment proceedings, the assessee attempted to explain the source of investment of each and every item of household goods and it was submitted that they have been acquired before the block period. It was stated that the assessee got married in the year 1990 in very rich family belonging to high status of society and items like air conditioner, sound system, fridge and television etc. were normal gifts given by them to their children at the time of marriage and other occasions like Diwali, on birth of children etc. The Assessing Officer proceeded to make additions presuming that the assessee was not having any air conditioner, TV, fridge etc, the normal items of hous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame. The valuation report of government Valuer available on page no 16 of the paper Book dated 23.10.2002 clearly mentioned that owner of the items in Locker no 270 UTI, Gotry Road, Baroda belongs to Smt. Poonam H Keshani and Harish A Keshwani. It was submitted that before the Assessing Officer as well as before the Ld. CIT(A), the appellant had argued that the Locker in which the jewellery has been found was in the Joint Name of Poonam H Keshwani and the appellant as second name and as such there cannot be any cognizance of the contents of the locker in the block assessment of the appellant due to the fact that the contents to the locker were mainly owned by the wife of the appellant and the appellant was only a joint holder and as such if the revenue wanted to initiate proceedings under chapter XIV B of the act then proceedings under section 158bd should have been initiated against the wife of the appellant. 7. It was further submitted that the Assessing Officer also made an addition of ₹ 1,50,000 on account of unexplained investment in acquiring the household assets. The appellant vide his submission dated 27.10.2004 (available on page no 5 of the paper book) filed item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ker No. 270) was in the name of Smt. Poonam H. Keshwani as the first holder and her husband Shri Harish Ashumal Keshwani was only the second holder. Further, the search warrant in the name of the assessee Shri Harish Ashumal Keshwani for the search of residential premises at 14, Triveni Park, Behind Akota Stadium, Baroda as per Panchnama dated 23rd October, 2002 cannot cover search for locker no. 270, UTI Bank, Gotri Road, Baroda and belonging to Smt. Poonam H. Keshwani and Shri Harish A. Keshwani in the joint names. Therefore, since there was no authorization for search for Locker No. 270 situated in altogether different premises and the locker being in the name of Smt. Ponam H. Keshwani as the first holder, the said jewellery cannot be considered in the block assessment of Shri Harish A. Keshwani, the assessee. We, accordingly, order deletion of ₹ 2,21,782/- on account of jewellery and silver utensils found in locker no. 270. 10. The second issue regarding addition on account of household goods is common to both the assessees and is being disposed of together. We are of the opinion that Chapter XIV-B is a separate Code to bring to tax only the undisclosed income. Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Chapter is in addition to regular assessment and income assessed will not be included in regular assessment. This Chapter cannot be regarded in substitution of regular assessment or in substitution of the powers available to the assessing authority under sections 148 and 263. The learned Departmental Representative has not been able to rebut or controvert the submission made by the learned counsel for the assessees that no material or evidence was found during the course of search to show that any unexplained expenditure was actually incurred by the assessee on household items. It is by now well settled that block assessment proceedings are not meant for making regular assessment but the same are meant for assessing the undisclosed income of the assessee based on material found as a result of search. Under Chapter XIV-B, undisclosed income has to be determined on the basis of evidence, documents and material found during the course of search and the assessing officer is not permitted to go beyond the material found as a result of search and to make roving enquiries in order to rope in certain income which is not supported by any evidence or material found during the course of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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