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TMI Blog2002 (9) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case are as follows: The respondent (petitioner in the original petition) is a practising advocate with 20 years of standing in the Bar. He has been assessed to income-tax for the last ten years. His assessments are up to date and there are no arrears of tax due to the Department. In his latest assessment, he had disclosed a total income of Rs. 95,180 for the assessment year 1995-96 and the same was accepted under section 143(1) of the Act. On February 23, 1996, the petitioner's place was searched under the powers conferred on the income-tax authorities by section 132 of the Act. One Assistant Director of Income-tax (Investigation) and several officers and men of the Income-tax Department took part in the search operation and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as authorised by the Act. Having been subjected to search under section 132, the petitioner wanted to buy peace by undertaking to be assessed under the new procedure under Chapter XIV-B of the Act. Accordingly, the petitioner wrote a letter dated July 4, 1996, to the second respondent requesting to issue notices under section 158BC. The second respondent issued notice/letter dated July 22, 1996, proposing to complete the assessment under section 143(3) or 144. Copy of the notice/letter is produced as exhibit P4. It is challenging exhibit P4 that the original petition was filed. A statement was filed on behalf of the Income-tax Department in the original petition. Exhibit P4 is regarding the assessment for the year 1993-94. The notice info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings can be taken. After hearing both sides, we are of the view that the appeal has to be allowed. Chapter XIV-B of the Act deals with the procedure for assessment. Section 158BA of the Act deals with assessment of undisclosed income as a result of search, which states as follows: "(1) Notwithstanding anything contained in any other provisions of this Act, where after the 30th day of June, 1995, a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A in the case of any person, then, the Assessing Officer shall proceed to assess the undisclosed income in accordance with the provisions of this Chapter. (2) The total undisclosed income relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e doubts, if any, on the issue. Explanation (a) states that the assessment made under this Chapter shall be in addition to the regular assessment. Explanation (b) states that the total undisclosed income relating to the block period shall not include any income, assessed in any regular assessment. Hence, the contention that once an assessment has been framed for a block period under section 158BC of the Income-tax Act, 1961, the Income-tax Officer is debarred from framing an assessment under section 143 cannot be accepted". In Caltradeco Steel Sales (P.) Ltd. v. Deputy CIT [2000] 243 ITR 643, the Calcutta High Court held as follows: "Chapter XIV-B is for assessment of undisclosed income found as a result of search and assessment under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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