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The Tax Publishers2013 TaxPub(DT) 2098 (AP-HC) : (2013) 053 (I) ITCL 0377 : (2013) 356 ITR 0323 Income Tax Act, 1961 --Search and seizure--Block assessment Undisclosed income--After search and seizure operation conducted in the residential premises of the assessee, a notice under section 158BC was issued to the assessee for filing a return of income for the block period. Assessee filed his return declaring total undisclosed income as 'nil'. Thereafter, assessing officer issued notice under section 143(2) and computed undisclosed income for block period. *Held:* Was not justified as there was a conclusive finding that the information sought to be relied upon by the assessing officer was already available in the balance-sheets or the books of account of the assessee. As such, the material obtained during the search did not lead to the unearthing of income. Income Tax Act, 1961 Section 158BB Income Tax Act, 1961 Section 158BC Income Tax Act, 1961 Section 132 In the Andhra Pradesh High Court Madan B. Lokur C. J. & Sanjay Kumar J. CIT v. B. Satyanarayana ITA No. 29 of 1999 Block Period 1-4-1985 to 3-1-1996 9 December, 2011 Appellant by : S. R. Ashok, Standing, for I. T. Department Respondent by : None appeared JUDGMENT *Madan B. Lokur, C. J.* Although this appeal was admitted on 22-1-2000, no substantial question of law was framed at the time of admission. 2. After hearing learned counsel for the parties, we frame the following substantial question of law : 'Whether, on the facts and in the circumstances of the case, the ITAT was justified in holding that income unearthed or detected during the course of a search cannot be assessed in the block assessment on the ground that the assessee has disclosed the transactions in the regular books of account ?' SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 2098 (AP-HC) : (2013) 053 (I) ITCL 0377 : (2013) 356 ITR 0323

Income Tax Act, 1961

--Search and seizure--Block assessment Undisclosed income--After search and seizure operation conducted in the residential premises of the assessee, a notice under section 158BC was issued to the assessee for filing a return of income for the block period. Assessee filed his return declaring total undisclosed income as 'nil'. Thereafter, assessing officer issued notice under section 143(2) and computed undisclosed income for block period. Held: Was not justified as there was a conclusive finding that the information sought to be relied upon by the assessing officer was already available in the balance-sheets or the books of account of the assessee. As such, the material obtained during the search did not lead to the unearthing of income.

Income Tax Act, 1961 Section 158BB

Income Tax Act, 1961 Section 158BC

Income Tax Act, 1961 Section 132

In the Andhra Pradesh High Court

Madan B. Lokur C. J. & Sanjay Kumar J.

CIT v. B. Satyanarayana

ITA No. 29 of 1999

Block Period 1-4-1985 to 3-1-1996

9 December, 2011

Appellant by : S. R. Ashok, Standing, for I. T. Department

Respondent by : None appeared

JUDGMENT

Madan B. Lokur, C. J.

Although this appeal was admitted on 22-1-2000, no substantial question of law was framed at the time of admission.

2. After hearing learned counsel for the parties, we frame the following substantial question of law :

'Whether, on the facts and in the circumstances of the case, the ITAT was justified in holding that income unearthed or detected during the course of a search cannot be assessed in the block assessment on the ground that the assessee has disclosed the transactions in the regular books of account ?'