Law:

Section:

Section 158BD of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income of any other person - Whether, Assessing Officer has power to make protective assessment in block assessment proceeding under section 158BD/BC - Held, yes FACTS During a search and seizure operation conducted at the residential and business premises of one 'P', who was the managing director of assessee-companies, certain documents were found wherein it was recorded that during the block assessment period 'P' was indulged in giving accommodation entries to various parties on commission basis and some of such accommodation entries were represented under the head 'introduction of share capital' by 'P' in the assessee-companies. During the block assessment in the case of 'P' he could not explain the source of aforesaid income and, therefore, said amount was added to his income as undisclosed income by the Assessing Officer. At the same time, the Assessing Officer had also issued notice under section 158BD to the assessee-companies as 'P' was the managing director of those companies through whom he was allegedly of providing accommodation entries. The assessees were required to prove the introduction of share capital within the parameters of section 68. According to the Assessing Officer, the assessees were not able to prove the same. Since addition on substantive basis had been made in the block assessment of 'P', in the case of the assessees, the Assessing Officer completed the assessment by making additions on protective basis. On appeal before the Commissioner (Appeals), the addition was deleted. The Tribunal also maintained the deletion of addition on the ground that there could not be protective assessment under section 158BD. On appeal to the High Court, the revenue contended that when it was not clearly ascertainable as to whether the addition should be made in the case of 'P' or in case of assessees, it was very well within the powers of the Assessing Officer to make substantive addition in the case of 'P' and protective addition in cases of assessees. HELD It clearly emerges from the various s that even when there is no specific provision in the Act for…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492