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2013 (8) TMI 703 - HC - Income TaxUndisclosed Capital gain - Scope of block assessment proceedings - Additions due to cross references of entries in the books of account - Transfer of membership of recognized stock exchange - CIT upheld disallowance - Tribunal deleted disallowance - Held that:- Chapter XIV-B deals with the procedure for making assessment in cases of search. This block assessment is distinct and separate and independent of a regular assessment for the reason that in these block assessment proceedings, the Assessing Officer is concerned only with undisclosed income and he has no power to consider material and evidence not detected as a result of some external information or a survey or some other source other than a search, it is found that some income had escaped assessment, then it is open for the Assessing Officer to resort to a regular assessment including re-opening a completed assessment but he cannot drag these items into the block assessment proceedings envisaged under Chapter XIV-B of the Act. Thus, a block assessment proceeding is distinct and different from the regular assessment proceeding and the Chapter deals exclusively with block assessment relating to search and all other proceedings are alien to it. Whether the cross-reference in the balance sheet of the assessee and M/s Aasheesh Securities Ltd., could be treated as material on the basis of which enquiries could be made and the assessee to be reassessed on the source of income for charging income to the capital gain - Held no - decided in favour of the assessee and against the revenue.
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