INCOME TAX ACT, 1961

--Search and seizure--Block assessmentComputation of undisclosed income on basis of assessee's admission--The late Sri H. R. was an assessee. Search and seizure was conducted under the provisions of section 132 at his residential premises and that of his associates. In the course of the search, receipts, agreements and other documents were found. His statement was recorded as well as of other concerned persons. During the course of the search by his letter dated 4-3-1998, he offered a total undisclosed income of Rs. 1.26 crores. Thereafter, a notice under section 158BC was issued to him. He filed the return of income for the block period on 28-9-1998, disclosing therein an undisclosed income of a sum of Rs. 34,51,960. During the pendency of the assessment proceedings he died on 6-9-1999. Accordingly, AO by his letter dated 12-11-1999, proposed to treat his wife, sons and grandsons as his legal representatives. However, vide letter dated 17-11-1999, these persons informed the assessing authority that on the demise of Sri H. R. the entire estate passed on to the H. R. B. Family Trust in terms of his last will and testament. Accordingly, the assessing authority proceeded to complete the assessment represented by the legal representatives, namely, the HRB Family Trust. The assessing authority after affording adequate opportunities of hearing on various dates passed an assessment order on 30-12-1999, determining the total undisclosed income in a sum of Rs. 2,66,67,510 which included the admitted undisclosed income of a sum of Rs. 34,51,960. Aggrieved by the same, assessees preferred an appeal before CIT assailing the additions made in the course of block assessment including the admitted undisclosed income. By the order dated 10-5-2002, the CIT confirmed some of the additions made by the assessing authority and so far as the remaining additions are concerned, rejected the same. Aggrieved by the same, three appeals each were filed by assessee and revenue arising out of the block assessments and one appeal each by assessee and revenue were filed arising out of the regular assessment under section 143(3). The Tribunal partly allowed the appeals of assessee whereby some of the additions made by the assessing authority confirmed by the appellate authority were deleted. Held: In view of the admissions made, the same become binding. It also binds the legal representatives. Even though the admissions were sought to be retracted not by the person who made it but, by the legal representatives, it would still amount to an admission and would bind the legal representatives.