Law:

Section:

Section 158BB, read with section 133A, of the Income-tax Act, 1961 - Block assessment in search cases - Undisclosed income, computation of - Whether only evidence found as a result of search or requisition of books of account or other documents at time of search can form basis for computation of undisclosed income of block period - Held, yes - Whether where for computation of undisclosed income of block period Tribunal excluded that portion of income which was included by Assessing Officer based on materials found during survey under section 133A, Tribunal acted in accordance with statutory provisions - Held, yes FACTS The assessee was engaged in the business of chit fund and real estate. A search under section 132(1) was conducted in respect of one 'A' and documents seized in the course of search indicated that the assessee had utilized undisclosed income through contributions to certain unregistered chits conducted by 'A'. On that basis, a survey was conducted under section 133A in the business premises of the assessee, which indicated certain real estate transactions carried on by the assessee and that profits derived thereon had not been included in the return filed by the assessee. The Assessing Officer included the said undisclosed income under section 158BB in the return filed by the assessee. On appeal, the Commissioner (Appeals) excluded that portion of the income, which was included based on the material found during the survey. On further appeal, the Tribunal confirmed the said order of the Commissioner (Appeals). On appeal : HELD A mere reading of section 158BB clearly indicates that the sentence "such other materials or information as are available with the Assessing Officer" cannot be bisected or taken in isolation for the purpose of computation. Such other materials or information as are available with the Assessing Officer should be relatable to such evidence. The word 'such' used as a prefix to the word 'evidence', assumes much significance, as it indicates only the evidence found as a result of search on requisition of books of account or other documents at the time of search. Any other material cannot form basis for computation of undisclosed…

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