TMI Blog2012 (2) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... . O R D E R In the present appeal under Section 260A of the Income Tax Act, 1961 (Act, for short), which relates to block assessment period 1st April, 1988 to 27th October, 1998, we are required to answer the following substantial question of law:- Whether the Income Tax Appellate Tribunal was right in law in deleting the addition made by the Assessing Officer in the block assessment and directing him to treat the protective assessment as having been made on substantive basis? 2. The respondent assessee is an individual and was working as a broker/agent in aluminum market. Search and seizure operation under Section 132 of the Act was conducted on 27th October, 1998. Thereafter, statutory notice under Section 158BC of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- had been recorded as cash received in the name of the respondent assessee during the period 1st July, 1998 to 26th October, 1998. Accordingly, difference between Rs.30,10,000/- and Rs.4,66,855/-, i.e., Rs.25,43,145/- was held as unexplained or undisclosed income and an addition to this extent was made in the block assessment proceedings. 7. It appears that the Assessing Officer in the regular assessment proceedings had made an addition of a similar amount on protective basis out of abundant caution. 8. In the first appeal, the respondent succeeded as the CIT(Appeals) deleted the said addition holding that the cash found of Rs.30,10,000/- was disclosed by the respondent assessee voluntarily. He observed that the Assessing Officer was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivision Bench noticed the amendments made in Chapter XIV-B and addition by way of insertion of an explanation to Section 158BA in view of the conflicting decisions or opinions expressed by various courts. The said explanation was inserted by Finance (No. 2) Act, 1998 with retrospective effect from 1st July, 1995 and reads as under:- [Explanation.- For the removal of doubts, it is hereby declared that- (a) the assessment made under this Chapter shall be in addition to the regular assessment in respect of each previous year included in the block period; (b) the total undisclosed income relating to the block period shall not include the income assessed in any regular assessment as income of such block period; (c) The income assessed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undisclosed income that has been clarified in the Explanation that the undisclosed income relating to that block period shall not include the income assessed in the regular assessment. Therefore, if any income is assessed under the regular assessment that cannot be taxed twice while making the assessment of the block period. But in the returns if some deductions have been claimed which are not permissible under the provisions of the Act of 1961, they can be assessed and taxed only in the regular assessment. 12. In view of the aforesaid legal position, we have to hold that the findings recorded by the tribunal that the addition could not have been made in the block assessment, is incorrect. The facts noted above clearly show that income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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