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2014 (10) TMI 71 - HC - Income TaxBlock assessment order u/s 158BB - Facts and figures of the year of search - Held that:- A perusal of the block assessment discloses that there was no discrepancy or disparity of facts and figures in relation to all the AYs within the block, except the last year - Chapter XIVB is virtually as a self-contained code - It prescribes the procedure to be followed whenever searches are conducted and the undisclosed income is discovered or found - To be fair to the assessee, the chapter provides for allowing all the deductions etc., as is done in the ordinary assessments - since the assessee did not file any returns for the AYs 1996-97, it is difficult to straightaway conclude as to whether they had any unabsorbed loss to their credit - the verification of their books of accounts is necessary. It is only when the AO is satisfied on verification of the books, that the assessee incurred loss during the period preceding search, that an occasion may arise to adjust the same - If in the course of verification it emerges that the assessee have incurred any losses during that period, losses do not answer the description of unabsorbed loss - even while upholding the view taken by the AO as well as the Tribunal, the verification of the books of accounts for the AY 1996-97 preceding the date of search needs to be undertaken – thus, the revenue is directed to undertake verification of the books of accounts for AY 1996-97referable to the period, preceding the date of search and if the respondent is satisfied that the appellants have incurred loss during that period, he shall take the same into account for determining the undisclosed income, as well as for passing the block assessment order – Decided partly in favour of assessee.
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