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TMI Blog2014 (5) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... on the valuation of certain immovable properties of the petitioner to ascertain the investment made by the petitioner in such properties. The petitioner is a firm engaged in the business of civil construction. The petitioner regularly files its return. Search operations were carried out by the Income Tax Department on 7.3.2006 in cases of Rajhans group of companies. Statement of one Shri Shivlal Jain, Managing Partner of M/s.Rajhans Builders was recorded under section 132(4) of the Act. In such statement, he admitted having earned unaccounted income of Rs. 6 crores by the said group. Later on during the search of his locker, he revised the undisclosed income of the group to Rs. 8.25 crores. On the basis of the materials collected and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 132(1) in the cases of Rajhans Group was carried out on 7/3/2006 by the investigation Wing of the Department. During the course of search and seizure operation, the statement of Shri Shivlal G. Jain, a Managing Partner in M/s.Rajhans Builders (R.F.) was recorded under section 132(4) of the Income Tax Act, 1961 wherein he admitted to have earned an unaccounted income of R. 6 crore in his group. Later, during the course of the search of his locker under section 132(1) he reaffirmed the admission of disclosure and revised the unaccounted income of his group concerns at Rs. 8.25 crore. Subsequently, the assessee group i.e. Rajhans Group concerns and its individuals vide their letter dated 31/03/2006 addressed to the Asstt. Director of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offered by the managers/partners of the assessee firm did not specify a particular assessment year to which such income pertained, and the fact that assessee firm has been carrying out its construction activities over a period of the last 5/6 years, and the disclosure of Rs. 8.25 crore of unaccounted income under section 132(4) of the I.T.Act which includes the unaccounted income of Rs. 1 crore was ;admittedly made by the assessee to cover all loose papers/diaries and various other papers documents, and in the light of the fact that no action under section 132/133A was taken place in the case of the assessee, and also taking into account the nature of business of constructions which involves the expenses/investment for along period, and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A of the Act. Section 158BD of the Act makes similar provisions for block assessment of undisclosed income of persons other than the searched person. In context of section 158BD of the Act, the Apex Court in the case of CIT v. Calcutta Knitwears, 362 ITR 673 (SC) held and observed as under: "In the result, we hold that for the purpose of section 158BD of the Act a satisfaction note is sine quo non and must be prepared by the Assessing Officer before h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout first exhausting the alternative remedies provided under the Act and the High Court ought not to have entertained the writ petition. It was observed as under: "14. In our considered view, at the said stage of issuance of the notices under Section 153C, the assessee could have addressed his grievances and explained his stand to the Assessing Authority by filing an appropriate reply to the said notices instead of filing the Writ Petition impugning the said notices. It is settled law that when an alternate remedy is available to the aggrieved party, it must exhaust the same before approaching the Writ Court. In Bellary Steels & Alloys Ltd. v. CCT, (2009) 17 SCC 547, this Court had allowed the assessee therein to withdraw the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance without first exhausting the alternate remedies provided under the Act. In our considered opinion, at the said stage of proceedings, the High Court ought not have entertained the Writ Petition and instead should have directed the assessee to file reply to the said notices and upon receipt of a decision from the Assessing Authority, if for any reason it is aggrieved by the said decision, to question the same before the forum provided under the Act." In the case of Chhabil Dass Agrawal (supra), the Supreme Court had elaborately considered the advisability of entertaining a writ petition when alternative statutory remedies were available. It was observed as under: "19. Thus, while it can be said that this Court has recognized some exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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