TMI Blog2001 (3) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... t is as follows: Search and seizure operations were conducted on a business group known as the Kohli group on November 1, 1996. As it was noticed that the assessee was having close links with the said group, a search under section 132 of the Act was also conducted at the residential premises of the assessee on November 30, 1996. The assessee was found to be engaged in the business of property dealing, as his main source of income was found to be commission earned for making arrangements for hiring out or letting out properties and from purchase and sale of immovable properties. The Assessing Officer issued notice under section 158BC of the Act on June 10, 1997, calling upon the assessee to file a return for the block period ending on Nove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subject-matter of challenge in the appeal. We have heard learned counsel for the parties. In this appeal, it has been stated that the Tribunal was not justified in deleting the additions made by the Assessing Officer as undisclosed income on the ground that the additions could not be termed as undisclosed income within the meaning of clause (b) of section 158B of the Act. Learned counsel for the Revenue with reference to the order passed by the Assessing Officer submitted that the special auditor was appointed to indicate its views vis-a-vis the seized material and, therefore, it cannot be said that the income as determined was not on the basis of any seized material but on the basis of change of opinion. Learned counsel for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any assets are requisitioned under section 132A in the case of any person, then, the Assessing Officer shall proceed to assess the undisclosed income in accordance with the provisions of this Chapter. (2) The total undisclosed income relating to the block period shall be charged to tax, at the rate specified in section 113, as income of the block period irrespective of the previous year or years to which such income relates and irrespective of the fact whether regular assessment for any one or more of the relevant assessment years is pending or not. Explanation.--For the removal of doubts, it is hereby declared that- (a) the assessment made under this Chapter shall be in addition to the regular assessment in respect of each previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o furnish within such time not being less than fifteen days; (ii) in respect of search initiated or books of account or other documents or any assets requisitioned on or after the 1st day of January, 1997, serve a notice to such person requiring him to furnish within such time not being less than fifteen days but not more than forty five days, as may be specified in the notice a return in the prescribed form and verified in the same manner as a return under clause (i) of sub-section (1) of section 142, setting forth his total income including the undisclosed income for the block period." Sub-section (1) of section 158BA starts with a non obstante clause. With effect from July 1, 1995, the said section has overriding effect over other pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of assessment, he has, inter alia, held as follows: "The basic point revolves around the issue whether in the block assessment period it could be considered about the income which has been hitherto returned under a particular section of the Income-tax Act could be brought to tax under a different head of income as contemplated under the Income-tax Act. Section 14 of the Income-tax Act enumerates the heads of income and inter alia provides that save as otherwise provided by the Act all income shall for the purpose of charge of income-tax and computation of total income be classified under the heads A to F. Part B refers to profits and gains of business or profession and Part E refers to the capital gains." In other words, he w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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