TMI Blog2014 (9) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... tial order keeping in view the aspects pointed by the court – Decided in favour of assessee. - Writ Petition No. 19623 of 2002 - - - Dated:- 27-8-2014 - L. Narasimha Reddy And Challa Ram,JJ. For the Petitioner : Sri S. Dwarakanath For the Respondents : Sri J. V. Prasad ORDER (Per the Honble Sri Justice L.Narasimha Reddy) The petitioner is a dealer in machinery relating to bore-well, at Secunderabad and is assessed to income tax. A raid was conducted in the business premises of the petitioner and those of its associate establishments, on 13.12.1995. The procedure under Chapter XIV-B of the Income Tax Act, 1961 (for short the Act), was invoked. The block assessment covering the assessment years 1985-86 till 13.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. He contends that though the 1st respondent was entitled to reject the claim, if the disclosures made by the petitioner were not to its satisfaction, the application was entertained and a detailed reasoned order was passed. He submits that the order passed by the 1st respondent completely accords with Chapter XIV-B and no exception can be taken to it. On the basis of the search conducted on 13.12.1995 in the establishments of the petitioner, a block assessment has been made. Chapter XIV-A of the Act prescribes a detailed procedure to be followed in this regard. As a first step, the undisclosed income is to be ascertained. This expression is defined under Section 158B(b) of the Act. The determination thereof is provided for under sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evious year under Chapter VI or unabsorbed depreciation under sub-section (2) of Section 32 shall not be set off against the undisclosed income determined in the block assessment under this Chapter, but may be carried forward for being set off in the regular assessments. A perusal of this indicates that, if an assessee, who has been subjected to search, has any unabsorbed loss or carried forward depreciation, obviously meaning the one which has spilled over the block period, it shall not be available to be adjusted or set off against the undisclosed income. Even while denying such a facility, the Act preserved such unabsorbed loss or carried forward depreciation, to be adjusted in the regular assessments. The record, in this case, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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