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2013 (10) TMI 1023 - HC - Income TaxWhether income unearthed or detected during the course of a search cannot be assessed in the block assessment on the ground that the assessee has disclosed the transactions in the regular books of account – Held that:- Reliance has been placed upon the judgment in the case of Asst. CIT v. Hotel Blue Moon [2010 (2) TMI 1 - SUPREME COURT OF INDIA], wherein it was held that The special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. It is not intended to be substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of account or documents and such other materials or information as are available with the Assessing Officer. Therefore, the income assessable in block assessment under Chapter XIV-B is the income not disclosed but found and determined as the result of search under section 132 or requisition under section 132A of the Act. In the present case, there is a conclusive finding that the information sought to be relied upon by the Assessing Officer was already available in the balance-sheets or the books of account of the assessee. As such, the material obtained during the search did not lead to the unearthing of income - Assessing Officer merely had a change of opinion which led him to conclude that what was discovered during the search was undisclosed income. This change of opinion was neither warranted in law, nor could it form the basis of invoking the provisions of Chapter XIV-B of the Act – Decided against the Revenue.
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