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2011 (9) TMI 751 - KARNATAKA HIGH COURTBlock assessment - Search - Undisclosed Income - Validity of notice issued under 158BC for assessment under 158BD - Held that: - When proceedings are initiated in terms of Section 158BC against a person who is covered under Section 158BD and the notice to be issued is prescribed under the Act and in the absence of any prescription of a notice in a prescribed manner under Section 158BD the only notice that requires to be issued both under Sections 158B and 158BD is the notice which is prescribed. It is the notice prescribed under Section 158BC. Therefore, the contention that the assessment is under Section 158BD whereas notice issued under Section 158BC and therefore the entire proceedings in pursuance of such notice is void and is untenable. - Decided in favor of revenue. Undisclosed income versus opening capital - block assessment - held that:- the said opening capital accrue to the assessees at a point of time anterior to the commencement of the block period, it cannot be treated as undisclosed income at all. The Tribunal was justified in directing deletion under that head. Estimation of income under block assessment - held that:- When the Assessing Officer was calculating the gross sale receipts at the rate of Rs. 37/- per square feet, he forgot to take into consideration the cost of formation of layout, roads, drinking water and other expenses and other amenities. As is clear from his order, he has taken the cost of land as undisclosed and then made this calculation and reduced the cost of land and according to him the balance is the income which represents the undisclosed income. Therefore, the Tribunal was justified in setting aside the said finding.
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