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2011 (1) TMI 100 - HC - Income TaxBlock period assessment - Question of Law - Whether the protective assessment can be framed in the proceedings under Section 158BC/158BD - A search and seizure operation under Section 132 of the Income Tax Act (hereinafter referred to as "the Act") was conducted on 20.06.2000 at the residential and business premises of Shri P.K. Sood who is the Director in the assessee companies - During the block assessment period in the case of Shri P.K. Sood, he could not explain the source of aforesaid income and the amount of Rs. 66 lacs was added back to his income as undisclosed income by the Assessing Officer (AO) - Coming to the powers of the AO to make addition on protective basis, the learned counsel referred to the judgment of the Supreme Court in the case of Lalji Haridas Vs. Income Tax Officer & Another [1961 -TMI - 49482 - SUPREME Court] and Chhotalal Haridas Vs. M.D. Karnik and Another [1961 -TMI - 49482 - SUPREME Court] wherein the Court delineated the following principle justifying the reason for making protective addition Held that, even when there is no specific provision in the Income Tax Act for protective assessment, power lies with the AO to make such an assessment on protective basis under certain circumstances. When there is such a power to make the protective assessment while carrying out the normal assessment proceedings even in the absence of specific provision, we fail to understand how the absence of provision should be a ground to preclude the AO for making protective assessment in block assessment proceedings under Section 158BC/BD of the Act.
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