Law:

Section:

Section 158BA, read with sections 113 and 158B, of the Income-tax Act, 1961 - Block assessment in search cases - Assessment of undisclosed income - Assessment year 1996-97 - Whether in order to take out any income or transaction out of clutches of block period, it is for assessee to prove to satisfaction of Assessing Officer that a particular income/transaction had already stood recorded in books of account/documents in normal course of business by assessee prior to date of search or their requisition - Held, yes - Assessee along with two other co-owners sold a piece of land - During search conducted on 1-2-1996 it was found that entire sale transaction was for Rs. 29 lakhs whereas assessee in sale deed mentioned sale price to be only Rs. 9 lakhs - In her regular return filed on 13-12-1996 assessee admitted that she had received a sum in cash over and above cheque amount which was detected in course of search operation - In block assessment proceedings, treating said income as undisclosed income under section 158B(b), Assessing Officer charged tax at 60 per cent - It was found that assessee did not file any kind of evidence before Assessing Officer which would have proved that income which she had disclosed in her regular return was already recorded in her books of account prior to date of search and balance amount received in cash was not entered in books of account of any of trio - Whether since intention of assessee was not to disclose receipt of Rs. 20 lakhs in cash or her 1/3rd share therein in her income for year in question, income in question had to be taxed in hands of assessee as per provisions applicable to block assessment, read with section 113 treating income to be an income from undisclosed source as defined under section 158B(b) - Held, yes FACTS In a search operation conducted on 1-2-1996, it was revealed that the assessee had purchased a piece of land along with two others which was subsequently sold by the trio. The sale consideration was shown to be Rs. 9 lakhs by the trio in the sale deed which was received by cheque. However, in the said operation it was found that Rs. 20 lakhs were received by the assessee and the other two in cash over…

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