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TMI Blog2022 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of Income Tax Act and it cannot be sued for computation of undisclosed income of block period under section 158BB. This court is of the opinion that the finding so rendered by the Tribunal is erroneous and bad in law, in the light of the decision of the Hon'ble Supreme Court in S.Ajit Kumar case [ 2018 (5) TMI 266 - SUPREME COURT] . The substantial question of law raised herein is decided in favour of the appellant / Revenue and the order impugned herein is set aside. Consequently, the matter is remanded to the Tribunal for reconsideration, on merits and in accordance with law, after affording due opportunity of hearing to the respondent/assessee. - T.C.A. No. 1480 of 2010 - - - Dated:- 21-6-2022 - Honourable Mr. Justic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order dated 18.02.2003. 3. Aggrieved by the order dated 18.02.2003 passed by the Assessing Officer, the respondent/assessee preferred an Appeal in I.T.A.No.382-C/02-03 before the Appellate Authority/Commissioner of Income Tax (Appeals) II, Coimbatore (in short, CIT(A) ), who after hearing both sides, reduced the block assessment arrived at by the Assessing Office from Rs.2,21,48,784/- to Rs.48,54,803/- and accordingly, partly allowed the appeal. 4. Challenging the order of the CIT(A), the respondent/assessee went on further appeal before the Income Tax Appellate Tribunal. By order dated 26.12.2006, the Tribunal allowed the appeal by concluding that the materials gathered in the course of inspection are to be treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration. 7. Heard the learned counsel appearing for the respondent/ assessee, who fairly conceded the submission made on the side of the appellant / Revenue, in view of the ratio laid down in the decision of the Hon'ble Supreme court in S.Ajit Kumar case (supra). 8. Admittedly, in the present case, based on the materials collected during the course of inspection, the assessing officer made assessment for the block assessment period in question, by determining the undisclosed income at Rs.2,21,48,784/-, which was reduced to Rs.48,54,803/- by the CIT(A). However, the Tribunal set aside the order of the CIT(A) and decided the case in favour of the assessee, by holding that the material gathered in the course of survey are to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13) On a perusal of the above provision, it is evident that for the purpose of calculating the undisclosed income of the block period, it can be calculated only on the basis of evidence found as a result of search or requisition of books of accounts or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence. Section 158BB has prescribed the boundary which has to be followed. No departure from this provision is allowed otherwise it may cause prejudice to the assessee. Needless to say that it is the cannon of tax law that it should be interpreted strictly. 14) However, Section 158BH of the IT Act has made all other provisions of the IT Act applicable to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 28. Section 158-BH provides for application of the other provisions of the Act. It reads: 158-BH. Application of other provisions of this Act.- Save as otherwise provided in this Chapter, all other provisions of this Act shall apply to assessment made under this Chapter. This is an enabling provision, which makes all the provisions of the Act, save as otherwise provided, applicable for proceedings for block assessment. The provisions which are specifically included are those which are available in Chapter XIV-B of the Act, which includes Section 142 and sub-sections (2) and (3) of Section 143. 15) The power of survey has been provided under Section 133A of the IT Act. Therefore, any material or evidence fou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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