TMI Blog2019 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... longing to the person during search, the block assessment procedure had to be undertaken. As decided in COMMISSIONER OF INCOME-TAX VERSUS DR. M. KE MEMON [2000 (3) TMI 19 - BOMBAY HIGH COURT] regular assessment is to ensure that the assessee had not understated the income or has not computed excessive loss or has not underpaid the tax in any manner whereas what is assessed under Chapter XIVB is only the undisclosed income for the block period and not the income or loss of the previous year which is only done in the normal regular assessment under section 143(3). Tribunal was right in holding that proceedings u/s. 158BD ought to have been initiated in order to disallow depreciation on assets leased to REPL - decided against revenue Al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EPL? (b) Whether on the facts and circumstances of the case and in law, the Tribunal was right in allowing broken period interest to the Respondent 2. Additionally, in Income Tax Appeals 601 of 2016 and 534 of 2016, following question was also addressed : (c) Whether on the facts and circumstances of the case and in law, the Tribunal was right in holding that depreciation on the sale and lease back transaction of the assets to AEL should be allowed u/s.32 of the Income Tax Act,1961? 3. Question (a) pertains to assessment in relation to Assessee s certain claims in the regular Assessments for the concerned Assessment Years namely 1996-97, 1997-98 and 1998-99. Through such Assessments, the Assessing Officer, on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be false. Section 158BB pertains to computation of undisclosed income of the block period and provides for the mechanism for computing such income. Section 158BC of the Act, provides a procedure for block assessment. Section starts with an expression where any search has been conducted under Section 132 or books of account, other documents or assets are requisitioned under Section 132A in the case of any person then ........ ....... ........ The procedure for block assessment is thus so be followed where any search has been conducted under Section 132 or books of account, other documents or assets are requisitioned under Section 132A in case of any person. 5. Section 158BD of the Act, which is also part of the Chapter XIV-B pertai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zed or requisitioned to the Assessing Officer of the present assessee who would than proceed under Section 158BC of the Act. Accordingly, even in case of the person other than searched person, upon finding of any income belonging to the person during search, the block assessment procedure had to be undertaken. In case of CIT v/s. Dr. M.K.E. Memon reported in 248 ITR 310, Division Bench of this Court had in para 8 held as under: 8:In conclusion, we would also like to mention that Chapter XIVB lays down a special procedure for the assessment of search cases and provides for assessment of undisclosed income as a result of the search. Under section 158BB, read with 158BC of the Act, what is assessed is the undisclosed income of the bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... give detail background of the issue and the decision of the Court in case of this very Assessee. This question is, therefore, not entertained. 10. In view of the rejection of Questions (a) and (b), Income Tax Appeal No. 444 of 2016, stands dismissed. 11. Income Tax Appeals No. 601 of 2016 and 534 of 2016 are admitted for consideration of the question (c), which for ready reference reproduced herein below: (c) Whether on the facts and circumstances of the case and in law, the Tribunal was right in holding that depreciation on the sale and lease back transaction of the assets to AEL should be allowed u/s.32 of the Income Tax Act,1961? 12. To be heard along with Income Tax Appeal No. 927 of 2014 and other connected Appeals. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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