TMI Blog2006 (12) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ote for Rs. 1,20,000 made issued by M/s. Kuntals was found from the premises of Shri Pankaj Agarwal. Locker in the name of Smt. Renu Agarwal, the assessee was also searched. No incriminating material was found in the said locker. The assessee filed return of income on 20-6-2000. The assessee as evident from assessment order is a regular assessee from the assessment year 1990-91 onwards and has been filing the returns of income regularly. Notice under section 158BC was issued on 10-1- 2001 and the return of income was filed for the block period at nil income. The Assessing Officer after considering the facts and reply of the assessee brought the amount of Rs. 1,20,000 to tax as undisclosed income for the block period. He also added interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been considered under section 158BD if there was no search in the hands of the assessee. However, we find that there was search of locker standing in the name of the assessee. Therefore, order passed under section 158BC is justified on the ground that two orders for the same block period - one under section 158BD and other under section 158BC cannot be passed. Single assessment order for the block period under section 158BC can be passed in respect of material found in search in own case and found in the premises of other persons. In our view, the amount of pronote has been rightly considered under section 158BC in the hands of the assessee as undisclosed income in respect of latter is zero. Therefore, the proceeding cannot be declared in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such income or transactions as recorded in the books of account and other documents maintained in normal course of business on or before the due date of search or requisitioned relating to such previous year, shall be reduced from undisclosed income computed under section 158BB(1). The provisions of section 158BB(1)(d) are applicable in the cases where assessee maintains regular books of account. In the case of Nitin Munje Hon'ble Madhya Pradesh High Court held as under: "The assessee had been assessed for the block assessment period from 1986-87 to 13-9-1995. On appeal the Tribunal found that there was no dispute that the date of filing of the return for the assessment year 1995-96 was extended till 31-10-1995 and the search was conduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dvance tax cannot be held to be undisclosed income for the purpose of block assessment. Also in the case of CIT v. Ashok Taksali [2002] 257 ITR 352 Hon'ble Rajasthan High Court held that once the salary income of the block year has been taxed and tax has been deducted at source, there is no question of holding that income of the assessee as undisclosed income of the block year for taxing it again after search. 11. If the ratio of the decision of Hon'ble Madras High Court, Rajasthan High Court and Madhya Pradesh High Court are applied to the facts of the assessee's case, the income on which no tax is chargeable, the same cannot be included as undisclosed income under section 158BB. The provisions of section 158B(1)(d) clearly mandate that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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