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TMI Blog2011 (7) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... nd setting aside the whole block assessment under Section 158BC read with Section 158 BG? 2. Whether in the facts and circumstances of the case, the Tribunal was right in setting aside the block assessment without verifying whether the assessee was a partner during the block assessment period from 1.4.1984 to 23.1.1996? 2. The assessee carries on business in jewellery. A perusal of the order of assessment shows that there was a search in the premises of the assessee on 23.1.1996 and 24.1.1996, during which, the assessee was found to be in possession of 1265 grams of jewellery and also had completed construction of a commercial building in the years 1989 to 1991 at an admitted cost of Rs.9,74,890/-. A notice under Section 158 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on behalf of the Revenue. 5. As regards the factual issues, the Tribunal found that there was no search warrant in the case of the assessee; that there was a search under Section 132 of the Income Tax Act only as regards the premises of M.H.Jewellers, Tirunelveli. Since, at the material point of time, the assessee was not at all a partner in the firm, the block assessment made was not sustainable and that the income for 1995-96 should have been taken up under the normal assessment procedure. The Tribunal held that when there was no valid search, as admitted by the Department, there could not be any valid block assessment as far as the assessee is concerned. The Tribunal further pointed out that even otherwise, this was not a case where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act could not be sustained. However, it is a matter of relevance to point out that under Section 158 BD of the Income Tax Act, undisclosed income of any other person can also be brought under block assessment procedure under Chapter XIVB. The said provision merits to be extracted hereunder: " Section 158 BD: Undisclosed income of any other person Where the Assessing Officer is satisfied that any undisclosed income belongs to any person, other than the person with respect to whom search was made under section 132 or whose books of account or other documents or any assets were requisitioned under section 132A, then, the books of account, other documents or assets seized or requisitioned shall be handed over to the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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