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Section 158B of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income  Once salary income of block year has been taxed and tax has been deducted at source, there is no question of holding that income of assessee is undisclosed income of block year. [A.Y. 1987-88 to 1996-97]. Once it is established that income-tax is deducted, the income cannot be treated as income from undisclosed sources. 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 is an undisclosed income of the block year. Further, the income which is below the taxable limit cannot be taxed merely because the return has not been filed before the date of search and seizure. G.M. Chafekar and D.S. Kale for the Appellant. R.L. Jain and Ms. V. Mandlik for the Respondent. JUDGMENT S.K. Kulshrestha, J.-This appeal under section 260A of the Income-tax Act, 1961, has been filed against the order dated July 5, 2002, of the Income-tax Appellate Tribunal, Indore Bench, Indore, in I.T. (SS) A. No. 8/ Ind/98 which has been admitted by this court on the following substantial question of law : "Whether, on the facts and circumstances of the case, the Tribunal was right in law in adding the salaried income to the undisclosed income specified by the assessee in the return for the block period even when the appellant had in the past disclosed regularly his salaried income and also deducted the tax at source as and when the income was found taxable ?" 2. The assessee is an individual in the service of M/s. Vikram Cement, which is a unit of the company known as Grasim Industries Limited. The appellant is getting a monthly salary from the said company and during the period his income from salary had exceeded the taxable limits, tax was deducted at source by his employer. While the assessee was living jointly with his brother, Dr. R. Lahoti, a search under the provisions of section 132 of the Income-tax Act was conducted in the residential premises of Dr. R. Lahoti on December 20, 1996. During the search, some cash and jewellery was found in the bedroom of the assessee but the same was…

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