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2011 (5) TMI 332 - CALCUTTA HIGH COURTBlock assessment under Section 158BD - Company registered in Sikkim - Search - in order to invoke provision of Section 158BD pre-condition of satisfaction of undisclosed income of the AO who conducted the search and seizure of some other assessee has to be fulfilled. - The Chennai Assessing Officer by his communication has mentioned that the appellant assessee might have claimed for depreciation in respect of the gas cylinders which were alleged to have been leased out to Feena - claim of depreciation going by definition of undisclosed income in Section 158B(b) of the Act cannot be said to be allowable or deductible expense as it is really written down value of the assets hence it cannot be said to be an income. - initiation of the block assessment based on the said communication of the Chennai Assessing Officer is without jurisdiction. The jurisdiction of initiation block assessment cannot cover in relation to any returns in which income has been disclosed whether it is assessed or not and kept pending, under Section 158BD.
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