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TMI Blog2001 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... 8B; if so, what is its effect on various deletions made by the Tribunal? (2) Whether on the facts and circumstances of the case, the Tribunal was justified in holding that once the assessment has been made in the status of an association of persons constituting certain persons, a firm constituted of the same persons cannot be assessed as an independent unit?" - The Tribunal's order rejecting the application under section 256(1) is, therefore, erroneous. - Accordingly, this application is allowed and we direct the Tribunal to state the case and refer the aforesaid two questions to this court for its opinion. - - - - - Dated:- 12-10-2001 - Judge(s) : DR. A. R. LAKSHMANAN., RAJESH BALIA. JUDGMENT The judgment of the court was delivered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, and, therefore, the Assessing Officer was fully justified in making the addition of Rs. 10,62,000? (iii) not holding that in view of section 158B(b)/158BB(1), there is no bar in considering and making additions on the basis of entries appearing in regular books/statement of affairs, bank account, etc., and in the computing of total income in accordance with the provisions of Chapters IV and VI of the Income-tax Act on the basis of evidence found as a result of search or requisition of books of account or documents and other material or information as are available with the Assessing Officer and, therefore, the Assessing Officer was justified in making addition of Rs. 10,62,000? (iv) in setting aside the addition of Rs. 41,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed by the Income-tax Appellate Tribunal while reducing income from Rs. 1,27,61,260 to Rs. 20,47,562?" These questions arise out of the block assessment made in the case of the assessee under section 158BC of the Income-tax Act, 1961, which is a special procedure provided for the assessment in search cases. For the aforesaid block period, the Assessing Officer has made an assessment of the income from undisclosed sources at Rs. 1,27,61,240. The assessment was made for the status of an association which was constituted of four persons. The respondent, Ambey Abhushan Bhandar was not assessed in the status of a firm as claimed by it, but was assessed in the status of an association of persons, constituted of Hemraj Kasliwal, Rajendra Kasl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal under section 256(1) of the Income-tax Act by the Commissioner of Income-tax for referring the aforesaid questions to this court for its opinion, which has been rejected by the Tribunal vide its order dated January 28, 1999; hence, this application. Having heard learned counsel for the parties, we are of the opinion that since the Tribunal has proceeded on the basic premises that a particular amount can be considered in a block period only with some material with the Assessing Officer suggesting that the same relates to undisclosed income and in the absence of any material and without primary facts relating to the transaction, any amount duly disclosed in the books, no addition is possible in block assessment, thus, declined to co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of various provisions of an enactment always gives rise to a question of law and not question of fact, is a principle which need not be elaborated. However, we are of the opinion that the first seven questions suggested by the Revenue are only different aspects of one question, which can be considered by reframing the question. Question No. (viii) too, in our opinion, is not a question of fact but a question of law. In our opinion, the following two questions of law arise out of the Tribunal's order, which govern the entire controversy: "1. Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the legal fictions created under various provisions of the Act, specifically provided under section 158 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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