TMI Blog2007 (7) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... and in respect of the balance amounts not received as per the agreements it was not shown and offered for assessment. Later, the block assessment was made in consequence of the search and while making the block assessment, the Assessing Officer noticed that the balance amount of ₹ 34.25 lakhs was not offered for tax and hence he was of the view that it was an undisclosed income for the block period. No details were available on the record in respect of the same. The Tribunal which is the highest fact finding authority ought to have considered the same as to how the impugned amount could be considered as undisclosed income under Chapter XIV-B of the Act, or not. Unfortunately, we lack the precious finding on the crucial factor related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), in the business and residential premises of Shri V. Natarajan, one of the partners of the assessee-firm. The search resulted in seizure of several incriminating documents. Hence, the Assessing Officer initiated proceedings under section 158BC read with section 158BD of the Act. In consequence to the same, the assessee filed a return in Form No. 2B admitting undisclosed income of the block period as "nil". The Assessing Officer completed the assessment for the said block period and determined the total undisclosed income at Rs. 1,07,15,000. While determining the undisclosed income, the Assessing Officer made an addition of Rs. 34.25 lakhs. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel appearing for the assessee requested the court to give suitable direction to the Tribunal to reconsider the matter and pass orders in accordance with law. Learned senior standing counsel appearing for the Revenue submitted that the findings given by the authorities below are that the assessee had not disclosed the income which has accrued, but for the search under section 132 of the Act, the accrued income would not have been brought to tax. Hence, the authorities are right in making addition under Chapter XIV-B of the Act. Heard counsel. The assessee produced the film by name "Love Birds" during the period relevant for the block assessment and the distribution rights of the film were given to M/s. GV Films and M/s. Nirmala A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. In this case, originally the assessee filed regular return on October 31, 1996, admitting a net loss of Rs. 27,37,590. The accounts of the assessee also have been audited and the same was enclosed along with the said return. The return was processed under section 143(1) of the Act. It has been specifically stated in the assessment order that during the year of account, the assessee had released, in January 1996, a Tamil feature film by name "Love Birds" for public exhibition. Later the assessment was reopened under section 147 of the Act on the ground that certain income chargeable to tax has escaped assessment and notice under section 148 of the Act was served on September 29, 2000. In response to the notice issued under section 148 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eassessment was also completed on April 24, 2001. From the scheme of the provision, it is clear that the block assessment and the regular assessment are for different purposes. The block assessment is for assessing the undisclosed income of the block period as a result of search and the regular assessment is for assessing the total income or loss of the previous year on the basis of the return under section 139 of the Act. Hence, it is clear that Chapter XIV-B of the Act relates to undisclosed income, and regular assessments made under the Act relate to the disclosed income of the same period. So, both regular assessment as well as block assessment would go on simultaneously. Hence, there could be two parallel assessments, one for undisclos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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