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2010 (7) TMI 561 - AT - Income TaxBlock assessment - Search and seizure - Unaccounted cash credit - Held that: the object of section 132 was to get hold of evidence on the tax liability of a person, to get hold of assets representing income believed to be undisclosed and finally applying so much of them as may be necessary in discharge of the existing or anticipated tax liability of the person concerned. The objective of the search is just to ascertain facts and collect evidence of concealed and undisclosed income but it is not their main objective to extract declaration from the persons searched about the alleged undisclosed income. Search and its assessment powers are extraordinary powers of revenue authorities which require to be exercised strictly in accordance with the provisions of the Act. - the authorised officer has a limited power to make enquiries on oath in respect of his findings from the search and he is not authorised to put questions in general. The person may not be in a position to make any correct or conscious disclosure in a statement if such statement is recorded at such odd hours - Hence there is no justification for making addition merely on the basis of statement recorded under section 132 (4) Addition on account of undisclosed income - the material found during the course of search basis on which it can be held that any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, or any expense, deduction or allowance claimed under this Act which is found to be false or where such money, bullion, jewellery, valuable article, thing, entry in the books of account or other document or transaction represents income or property which has not been or would not have been disclosed for the purposes of this Act. Since no undisclosed income was found therefore amount taken by the AO as undisclosed on this account in the block assessment is deleted.
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