TMI Blog2007 (3) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessment proceedings were initiated under Chapter XIV-B of the Income Tax Act. The writ petitioners, as well as the Group, filed a consolidated petition before the Settlement Commission, the first respondent herein in the writ petition, for the block period commencing from 1.4.1986 to 11.10.1996. 2. The Settlement Commission admitted the application under Section 245-D of the Income Tax Act under order dated 27.2.1998. 3. The petitioners claimed unabsorbed depreciation and business loss for the Assessment Years 1995-96 and 1996-97, comprised of the block period. The claim was rejected by the Settlement Commission, first respondent herein. Under Order dated 19.11.2001, referring to Section 158-BB(4) and Explanation-A to Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the unabsorbed current depreciation was not hit by the provisions contained in Section 158-BB(4) of the Act. The assessees claimed that the rejection of such a claim would result in discrimination between cases like the assessees and others where there was no return of income filed. 6. Learned senior counsel appearing for the petitioner submitted that the first respondent erred in misinterpreting the provisions of Section 158-BB(4). Referring to Section 158-B Clause (b), he submitted that unabsorbed depreciation and business loss could not be included or made as addition to the undisclosed income. He further submitted that going by the provisions of Section 158-BB(4), there was no prohibition in setting off the unabsorbed loss as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1995, a search is initiated under Section 132, or where the books of accounts or other documents or assets or requisitions under Section 132-A in the case of any person, then the assessing officer shall proceed to assess the undisclosed income in accordance with the provisions of Chapter XIV-B. Section 158-BA(2) Explanation declares for the removal of doubts, that the assessment under Chapter XIV-B shall be in addition to the regular assessment in respect of each previous year included in the block period. This only makes it clear that under the Explanation to Sub Clause (a), the intention is that the statute segregates the entire gamut of block assessment from that of a regular assessment to the effect that each one of them have ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviding for assessment in such cases, a procedure distinct for assessing number of years in a search case as a block period as distinct from a regular assessment for each assessment year. The provisions also make clear its intention to deviate from the regular method by the non-obstante clause provided under Section 158-BA. The provisions of the Act thus giving no room for doubt as to the manner of computation, we do not find any justification to read the provisions otherwise to grant the relief. 11. The provisions under Chapter XIV-B do not indicate even a remote possibility for considering a claim of set off or brought forward losses under Chapter VI or unabsorbed depreciation under Section 32(2) to be considered in the determinatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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