TMI Blog2010 (1) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... iod. Since the finding of the Tribunal that assessment is solely based on cash flow statement furnished by the assessee is factually incorrect and since the assessment is based on information collected in the form of Balance Sheet and other documents of the firm, M/s. Hotel Indraprastha seized from Anandan in the course of search carried out in his premises, the block assessment under Section 158BD read with Section 158BD is tenable as found by the CIT (Appeals). - Decided in favor of revenue. - ITA No. 748 of 2009 - - - Dated:- 7-1-2010 - Shri C. N. Ramachandran Nair and Shri V.K. Mohanan, JJ. Represented By: Shri P.K.R. Menon and Jose Joseph for the Appellant. T.M. Sreedharan, Shri Smt. C.K. Sherin and V.P. Narayanan for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital contribution was increased to Rs. 5,58,500 in May, 1997 and the same was increased to Rs. 5,89,500 in July, 1997. Based on the evidence gathered in the form of Balance Sheet of the firm. M/s. Hotel Indraprastha, the assessing officer issued notice under Section 158BC read with Section 158BD and the assessee was called upon to file written explanation for the investments. Even though the assessee filed "Nil" return, the assessing officer collected information and called upon the assessee to file cash flow statement showing investment and expenditure. Based on information gathered, the assessing officer made assessment for the block period from 1-4-1987 to 10-3-1998 determining the total undisclosed income for the block period at Rs. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of one Sri Anandan, who is another partner of the firm. Section 158BD authorises the assessing officer to proceed with block assessment against any person if the assessing officer is satisfied that any undisclosed income belongs to such person other than the person with respect to whom search was made under Section 132 based on the books of account, documents or assets seized in the course of search of such other person, to proceed first by issuing notice under Section 158BC to the person against whom information is gathered and to make assessment thereafter. In this case, the Assessing Officer, who conducted search of residential premises of one Anandan, under Section 158BC has jurisdiction to assess respondent-assessee as well and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing on behalf of the department submitted that recording of satisfaction for proceeding under section 158BD arises only when the assessing officer who conducted the search is not the person who has jurisdiction to make assessment under Section 158BD and the requirement of Section 158BD is to transfer the file in such case to the officer having jurisdiction to assess the person against whom information is obtained in the course of search of another person. His contention is that in this case the Officer who made the search of residential premises of Anandan has jurisdiction to make assessment against the assessee, and the assessment made is based on the documents and evidence gathered on search and other materials and information collec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tel business and once assessment proceedings are initiated under Section 158BD based on evidence found in the course of search about undisclosed income of the person other than the person searched, then it would be open to the assessing officer to make use of any other information available with him or collected by him for making block assessment for such period. Since the finding of the Tribunal that assessment is solely based on cash flow statement furnished by the assessee is factually incorrect and since the assessment is based on information collected in the form of Balance Sheet and other documents of the firm, M/s. Hotel Indraprastha seized from Anandan in the course of search carried out in his premises, the block assessment under S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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