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TMI Blog2018 (5) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... lized while making the Block Assessment in respect of an assessee under Section 158BB read with Section 158 BH of the IT Act. The same would fall under the words “and such other materials or information as are available with the Assessing Officer and relatable to such evidence” occurring in Section158 BB of the Act. In the present case, the Assessing Officer was justified in taking the adverse material collected or found during the survey or any other method while making the Block Assessment. - Decided in favour of revenue - Civil Appeal No. 10164 of 2010, Civil Apeal No. 10917 of 2013, Civil Appeal No. 4449 of 2015, Civil Appeal No. 5255 of 2015 And Civil Appeal No. 10165 of 2010 - - - Dated:- 2-5-2018 - Mr. R.K. Agrawal And Mr. Abhay Manohar Sapre JJ. For the Appellant(s) : Mrs. Anil Katiyar, AOR, Mr. B. V. Balaram Das, AOR For the Respondent(s) : Mr. Kunal Cheema, AOR, Mr. K. V. Mohan, AOR, Ms. Surbhi Kapoor,Adv., And For Mrs. Bina Gupta, AOR JUDGMENT R.K. Agrawal, J. 1) This appeal has been filed against the impugned judgment and order dated 22.11.2006 passed by the High Court of Judicature at Madras in Tax Case (Appeal) No. 2620 of 2006 whereb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l. 3) Consequently, the Revenue has filed this instant appeal before this Court. 4) Heard the arguments advanced by learned senior counsel for the parties and perused the relevant records of the case placed before us. Point(s) for consideration:- 5) The short point for consideration which arises in this appeal is as to whether in the light of present facts and circumstances of the instant case, the material found in the course of survey in the premises of the builder could be used in Block Assessment of the assessee? Rival contentions: 6) At the outset, learned senior counsel for the Revenue contended that the High Court failed to consider that the information gathered as a result of search is not the details of appointment of interior decorator rather it is information regarding the cash payments made over and above the cheques payments and not accounted by the assessee. Further, it was also contended that it is the standard practice in the Department that when a search takes place in the case of an assessee, many related business premises are simultaneously covered under survey. Learned senior counsel further contended that though it is called a survey, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etion of assessment where a search is initiated under Section 132 of the IT Act or books of account or other documents or any asset are requisitioned under Section 132A of the IT Act. 9) It is a cardinal principle of law that in order to add any income in the block assessment, evidence of such must be found in the course of the search under Section 132 of the IT Act or in any proceedings simultaneously conducted in the premises of the assessee, relatives and/or persons who are connected with the assessee and are having transaction/dealings with such assessee. In the present case, the moot question is whether the fact of cash payment of ₹ 95.16 lakhs can be added under the head of the undisclosed income of the assessee in block assessment. 10) In the instant case, the office and residential premises of the assessee searched on 17.07.2002 and finally concluded on 21.08.2002. During the course of search, certain evidence were found which showed that the assessee had indulged in understatement of his real income relating to the block period from 01.04.1996 to 17.07.2002. Consequently, a notice dated 25.02.2003, under Section 158BC of the IT Act, was issued to the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter XIVB except otherwise provided under this Chapter. Chapter XIV B of the IT Act, which relates to Block Assessment, came up for consideration before this Court in Hotel Blue Moon (supra) wherein it has been held as under: 18. Chapter XIV-B provides for an assessment of the undisclosed income unearthed as a result of search without affecting the regular assessment made or to be made. Search is the sine qua non for the block assessment. The special provisions are devised to operate in the distinct field of undisclosed income and are clearly in addition to the regular assessments covering the previous years falling in the block period. The special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. It is not intended to be a substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of accounts or documents and such other mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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