The Tax Publishers2020 TaxPub(DT) 5355 (Cal-HC) : (2020) 429 ITR 0143

INCOME TAX ACT, 1961

Section 153A Section 158BB

Block assessment proceedings can only be based on material found during the course of search and such other material which was relatable to some material found during the course of the search.

Writ - Search and seizure - Material gathered during search and other related to that material -

Referring to section 158BB, the assessee had submitted that the department accepted the finding that additions proposed by the AO were not based on material found during the course of the search of assessee and were not relatable to such search. According to him, therefore, such material cannot be the basis of making additions in the block assessment proceedings. According to assessee, an AO, while making a block assessment, can make addition on the basis of evidence found during the course of search and other material provided such other material was relatable to the evidence gathered during the course of search. Held: It was undisputed that the proposed additions were based on material gathered from other searches and such other materials were not relatable to any material gathered during the course of search of assessee. He had submitted that the department was interpreting section 158BB incorrectly. He has drawn the attention of the court to the fact that section 158BB was amended by the Finance Act, 2002 with retrospective effect from 1-7-1995. According to him, evidence from other sources which had no relevance to the search of assessee cannot be the basis to make additions in block assessment proceedings. Block assessment proceedings can only be based on material found during the course of search and such other material which was relatable to some material found during the course of the search.

Relied:CIT v. Smt. C. Sabira (2011) 338 ITR 226 (Ker) : 2011 TaxPub(DT) 0201 (Ker-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :


INCOME TAX ACT, 1961

Article 226

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