Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 103 - HC - Income TaxValidity block assessment u/s 158BD – search conducted in the premises and not against assessee - Notice served for suppression of income - Held that:- Making of block assessments is a rare phenomenon - It is only in respect of the assessees who are suspected to have withheld the important information and thereby, the income, that the searches are made – in ACIT Vs. HOTEL BLUE MOON [2010 (2) TMI 1 - SUPREME COURT OF INDIA] it was observed that it is only when some material which did not form part of the books of account, the returns and the corresponding orders of assessment is unearthed in the course of search, that an order of block assessment can be passed - no search as such was conducted against the respondent - the proceedings under Chapter XIVB of the Act were initiated against him on the basis of the alleged discoveries in the course of search, conducted in the premises of M/s. Mahaveer Group of Companies - it is quite possible that if a search, conducted against one assessee reflects some facts and figures referable to another assessee, proceedings can be initiated against the latter also - the finding that there was suppression of the sale of gift articles worth ₹ 49,90,175/- by M/s. Mahaveer Group of Companies itself is not well-founded - in their books of account, the transactions were very much reflected - the respondent has shown the purchase of the gift articles not only in their books of account, but also in the returns - there did not exist any occasion or basis for the Department to initiate block assessment proceedings against the respondent- the order of the Tribunal is upheld – Decided against revenue.
|