Law:

Section:

Section 158BB of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income, computation of - Block period from 1996-97 to 20-6-2001 - Whether statements of partners and employees of assessee recorded by Assessing Officer under section 132(4) and documents collected during search are relevant and admissible in respect of all matters for purpose of any investigation connected with any proceedings under Act and same cannot be brushed aside in block assessment by stating that they are having only very little application - Held, yes - Whether when it is revealed in a search under section 132 that assessee was following a particular method to conceal income, it is just and reasonable to presume that same practice was followed by assessee in all assessment years in block period for purpose of block assessment - Held, yes - Whether, however, such presumption is rebuttable and in such circumstances, it is for assessee to establish that same method of concealment was not followed in earlier assessment years in block period or that method of concealment detected was practiced only from a particular period - Held, yes - Assessee-firm was running a bar attached hotel - A search was conducted in its premises during which managing partner and employees at bar stated that only 80 per cent of actual sales turnover in respect of liquor was recorded in cash book - In block assessment, Assessing Officer made addition of 20 per cent of total disclosed turnover - Whether when statement of partner as well as that of person in-charge of bar and documents seized revealed that concealment of income was in respect of sale turnover of liquor alone and there was no material to show that concealment of sale turnover was also in respect of other food items, i.e., snacks, food items, soft drinks, etc., Assessing Officer should have made block assessment only in respect of liquor sale turnover - Held, yes - Whether taking into account that there would have been business of food other than liquors and there would have been customers other than liquor consumers, share of liquor sales could be determined at 70 per cent of total turnover and taking into account that 20 per…

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