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2021 (1) TMI 39 - ITAT MUMBAIBlock assessment - Applicability of Chapter XIV B - addition to the peak of loans - AO treating the transactions disclosed in the regular books of accounts as covered by the block assessment by making additions in respect of the transactions as undisclosed income of the appellant under the provisions of Chapter XIV B - HELD THAT:- No material were collected in the course of search so as to show that the loans accounted by the assessee in his books of accounts were otherwise unexplained or bogus. In the course of block assessment proceedings, in spite of all his legal arguments, the assessee has filed the details to prove the genuineness of the loans. Whether those explanations are acceptable or not is a different issue. In the light of those explanations and details furnished by the assessee, it is not possible to come to an irrefutable conclusion as far as the impugned block assessment is concerned that the loans amounts were unexplained. Therefore, it is to be seen that no material were available in the hands of the assessing authority so as to discredit the earlier disclosure already made by the assessee. It is not necessary to repeat the plethora of case laws which consistently held that what has been already disclosed cannot be a matter of block assessment. The Assessing Officer cannot indulge in roving enquires regarding the issue that has already been disclosed in the books of accounts and placed before the departments. All such enquiries and investigations should be made by the Assessing Officer in a proceeding known to the Income Tax Law other than the block assessment proceedings. Therefore, we are inclined to accept to the substantive ground raised by the assessee on the question of law that whether the loans treated by the Assessing Officer as unexplained could be treated by the Assessing Officer as unexplained could be treated as forming part of the undisclosed income. We hold that the loan amount cannot be made a subject matter of a block assessment on the basis of the review made by the assessing authority. See RAKESH N. DUTT VERSUS ASSISTANT COMMISSIONER OF INCOME-TAX AND OTHERS [2007 (10) TMI 285 - BOMBAY HIGH COURT] - Appeal filed by the assessee is allowed.
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