INCOME TAX ACT, 1961

Search and seizure- Block assessment-Computation of undisclosed income-Jewellery, money and bonds etc. found in the bank lockers of assessees held jointly with their husbands

Tribunal concluded that there were no search warrants in the name of assessees, hence, it accepted the contention of assessees that the proceedings initiated under section 158BC in the cases of the assessees were ab initio void and without jurisdiction. Revenue was unable to furnish any clarification and stated before Tribunal that the facts stated by assessees regarding non-issuance of the search warrant in the case of the ladies were correct. Held:Unless a search warrant was issued, AO could not invoke the provisions of section 158BC for initiation of block assessment proceedings under Chapter XIV-B. However, in respect of the bank locker, it was submitted that the officer was armed with the search warrant, therefore, whatever the property was found, namely, jewellery, money and bonds, etc. assessees ought to have been assessed and Tribunal ought not to have interfered with the order of CIT (A). However, Tribunal was of view that no addition whatsoever had been made in either of the two cases on the basis of the assets found in the respective lockers which were being operated by each of assessees jointly with their husbands.

Income Tax Act, 1961 Section 158BC

Decision: In favour of Assessee.

CIT v. Ms. Pushpa Rani