TMI Blog2011 (1) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction to assess the very same amount, which was considered and given up while making block assessment. The income assessed under Section 147 i.e. the amount covered by deposit receipts maintained in Banks, were considered in the block assessment and at that time, the AO treated only interest income as income of the assessee and not the deposit amounts as such, as undisclosed income of the assessee. However, when the CIT (Appeals) cancelled the block assessment holding that Bank deposits were that of family members of the assessee and therefore interest income therefrom could not be assessed in his hands, the AO tried to bring to tax the deposit amounts itself by invoking the powers under Section 147. Even though block assessment und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee and also interest on various Bank deposits maintained in the name of assessee's relatives. It is pertinent to note that the Assessing Officer assessed only the interest from these deposits as assessee's income and the deposit amounts in the names of the relatives were not assessed as undisclosed income of the assessee for the year 1992-93 which fell within the block period. 4. When the block assessment was challenged in appeal, the CIT (Appeals) upheld the assessee's claim that arbitration amount was included in the income originally returned and 8% of which was assessed as estimated income from contract receipts and so much so there is no scope for treating arbitration amount later received as undisclosed income. So far ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter dropping the proposal to assess the deposit amounts as undisclosed income, only interest from such deposits were assessed as income of the assessee which itself was substantially cancelled in the appeal filed against the block assessment. When second appeal was filed by the Revenue before the Tribunal, the Tribunal held that reassessment completed under Section 147 is only a result of change of opinion of the Assessing Officer. Consequently, they upheld the CIT (Appeals)'s order, who cancelled the income escaping assessment, against which this Appeal is filed. 6. Learned Senior counsel appearing for the Revenue contended that there is no change of opinion on the part of the Assessing Officer as found by the Tribunal, and according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent under Section 158BC and income escaping assessment under Section 147 can probably be made for the same period, on different basis we do not think assessments could be successively made one after another for the same period under these provisions based on the same materials. Once materials are gathered either during search under Section 132 or during survey under Section 132A, it is up to the Assessing Officer to make block assessment under Section 158BC or if he feels that income escaping assessment is called for under Section 147, it is up to him to elect between the two and make assessment under the provision he finds appropriate. However, once the Assessing Officer, after conducting search and based on materials gathered during searc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
