9911796707
TMI Blog2006 (11) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... premises of the builder could not be used in the block assessment of the assessee? 2. Whether on the facts and circumstances of the case, the Tribunal was right in holding only if evidence of cash payment to the builder had been found at the time of search, could the proof of the same found at the time of survey in the builder's premises be used, inspite of the fact that other details of employing that particular builder were found at the time of search? 2. The brief facts leading to the above questions of law are as under: 3. The assessee is a Cine Actor. The office and residential premises of the assessee were searched on 17.07.2002 and the search was concluded on 21.08.2002. In the course of the search, evidences were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings, and confirmed the order of assessment and dismissed the appeal. Aggrieved by the order of C.I.T.(A), the assessee filed an appeal to the Income-tax Appellate Tribunal (hereinafter referred to as the "Tribunal"). The Tribunal was of the view that information of materials found in the survey operation of the premises of M/s.Elegant Constructions, was not related to any material found during the course of search operation and hence the same cannot be a basis for making any addition in the block assessment. 4. Learned Standing Counsel appearing for the Revenue submitted that the assessee made cash payment to M/s.Elegant Constructions to the extent of Rs.95,16,320/-. In the course of the search operation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue in the course of regular Return filed by the assessee. The transaction between the assessee and the said M/s.Elegant Constructions was also disclosed for the assessment year 2001-2002. The investment in Seaward Road, Valmiki Nagar, Thiruvanmiyur bungalow was also disclosed to the Revenue in the regular Return. Therefore, it is clear that the construction of residential bungalow and interior decoration by engaging M/s.Elegant Constructions, was within the knowledge of the Department as on the date of search. In the course of search operation, a survey was also conducted under Section 133A of the Act in the official premises of M/s.Elegant Constructions. In the course of survey operation, the Revenue found th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of undisclosed income of the block period is contemplated under section 158BB. As per the section, the undisclosed income of the block period should be the aggregate of the total income of the previous years falling within the block period computed in accordance with the provisions of this Act, on the basis of the evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence, as reduced by the aggregate of the total income, or as the case may be, as increased by the aggregate of the losses of such previous years. A mere reading of the above provision clearly indicates that the sentence "suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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