2010 (5) TMI 556 - KERALA HIGH COURT

Search - Block assessment - Concealment of income - The Appellate Tribunal by a common order arrived at a finding that no evidence was disclosed in the search to show that there was suppression of sales for the assessment years 1996-97 to 2000-01 - A reading of section 131 of the Income-tax Act would show that the Assessing Officer is vested with the same powers as are vested in a court under the Code of Civil Procedure, 1908 in respect of (a) discovery and inspection, (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath, and (c) compelling the production of books of account and other documents - the statement of the partner and employees recorded and documents collected are relevant and admissible in respect of all matters for the purpose of any investigation connected with any proceedings under the Income-tax Act - It was further ruled that insertion of proviso to section 113 is mere clarification - While setting aside the orders in first and second appeal, the assessment order is restored with modification reducing the concealment of income at 14 per cent. of the total turnover - Appeal is allowed partly