TMI Blog2006 (11) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... narthana Raja, J.-1. This appeal is filed by the Revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income-tax Appellate Tribunal, Chennai, 'B' Bench dated 28.04.2006 in I.T.(S.S.)A.No.53/Mds/2005, raising the following substantial questions of law: 1. Whether on the facts and circumstances of the case, the Tribunal was right in holding that the material found in the course of survey in the 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 bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the materials found in the course of survey could not be utilised for computing the income of the block period. The C.I.T.(A) held that it was due to the search action, the Department had found that the assessee had engaged the services of M/s.Elegant Constructions, the builder and decorator and hence the same is directly related to the information obtained in the survey proceedings, 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 Constructio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent of Rs.95,16,320/- and the same is in accordance with law. 5. Heard the counsel. Admittedly, there was a search on 17.07.2002. The assessee constructed a residential bungalow in which the construction and interior decoration was done by one M/s.Elegant Constructions. The cost of investment was disclosed to the 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 engagin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.K.Senniappan reported in [2006] 284 ITR 220. The Court considered the scope of Sections 133A and 158BB of the Act and held as follows: "Section 158BB occurs in Chapter XIV-B, which provides for special procedure for assessment of search cases. The computation 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 Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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