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2013 (2) TMI 174 - KARNATAKA HIGH COURTBlock assessment - computation of period of Block - undisclosed income - Search - sum of Rs.50 lakhs detected as a loan given to Sri T. Balakrishna - which had not been recorded in the books of account - Held that:- object of introducing Chapter XIV-B into the statute book is to ensure that the need for invoking reopening provision, viz., section 147 of the Act and a limitation placed therein are all in the interests of the Revenue - also counter productive for the Revenue and the purpose of providing a degree of protection to honest assessees, who had already filed their returns of income - Provisions of Chapter XIV-B call for a strict construction and not to either vaguely or loosely relieve an erring assessee from the rigour of these statutory provisions. If an undisclosed income is found to attract the provisions of Chapter XIV-B, then there is no escape for an assessee from the applicability and the consequences that follow on the application of this provision of law. As per the statutory provision, the exclusion of the income from assessment of block period, if it is attributable to the part of the accounting period of the year in which the search has been conducted, it is possible only of and only when the assessee has produced before the AO such of his books of account which are maintained in the normal course of business activity of the assessee, wherein is recorded the entries indicating the generation of income to the part of the accounting period and then only to exclude that part of the income from that segment of accounting period and allow the assessee to file a return excluding the income in the later assessment and not otherwise. In the present case, the assessee never made any offer for bringing to the notice of the Assessing Officer such a possibility by producing relevant material and in fact we find that the assessee is not even informed about the activity to the Revenue - Therefore this appeal is to be allowed against the order of the Appellate Tribunal being without any rhyme or reason and not in consonance with the statutory provisions and not even in consonance with the material on record - In favour of the Revenue
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