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2010 (10) TMI 639 - AT - Income TaxSearch and seizure - Block assessment - Addition - Non-availability of books of account and relevant vouchers - Estimation of net profit - Undisclosed investment - Bogus purchase - Assessing Officer did not estimate the net profit in the block assessment on the basis of material and evidence found and seized during search operation - According to Section 158BB(1), determination of undisclosed income is to be made on the basis of material and evidence found during search – Decided in the favour of the assessee Regarding addition of Rs. 2,80,000 out of liability against sundry creditors - List of the sundry creditors, their confirmations, ledger copies of the accounts were produced before the Assessing Officer - during the course of search, no material was found to hold that the liability to the extent of Rs. 2,80,000 is non-existing or has ceased - merely because the assessee could not produce the evidence in support of the liability already existing in his accounts, the same cannot be treated as undisclosed income of the block period, because no evidence was found during the course of search for cessation of such liability - Decided in the favour of the assessee Whether the income declared in the return for assessment year 1999-2000 filed beyond the prescribed time under section 139 and the income declared in the belated return for assessment year 2000-01 filed under section 139(4) should be treated as undisclosed income of the assessee - The assessee furnished the return beyond the date for filing of the belated return under section 139(4) - Held that: where an amount stands disclosed in the regular return of income, the Assessing Officer can go into the genuineness of said amount only in the course of regular assessment and not during the course of block assessment proceedings - the appeal of the revenue stands partly allowed
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