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2018 (11) TMI 1257 - HC - Income TaxValidity of Block assessment u/s 158BC - suppression found on search - assessee had not disclosed the sales turnover as found in search in the books of accounts - Held that:- Admittedly the assessee started the Bar Hotel in September, 1998. The search was conducted on 29.07.1999. Hence, the block period under Section 158BC were between September, 1998 to 31.03.1999 and 01.04.1999 to 29.07.1999, the assessment years being 1999-2000 and 2000-2001. The notice under Section 158BC read with Section 158BD was issued on 19.11.199. At that point, the time for filing of return even in the first block period had not expired, being 31.12.1999. As rightly noticed by the Tribunal, though an intelligent assumption has been made that the returns would not have disclosed an excess sale consideration but for the search; it remains in the realm of an assumption. There were no books of accounts recovered from the assessee's business premises which showed a lesser sale consideration. Statements of sales were recovered on search both from the assessee's business premises as also the residence of the Managing Director. The statements recovered from the residence of the Managing Director showed a larger consideration. It cannot be assumed that the returns filed would have shown only the figures in the statements recovered from the business premises. As recorded by the Tribunal that the returns for both the assessment years, being 1999-2000 and 2000-2001, was filed by the assessee showing the higher sale consideration as has been found from the documents recovered from the residence of the Managing Director. Hence, if at all, the search materials could have led to a consideration for a re-assessment if there was no correct disclosure and in no circumstance a block assessment. We are, hence, not inclined to interfere with the order of the Tribunal and we answer the question of law in favour of the assessee
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