Law:

Section:

Section 158BC, read with sections 132, 260A and 263, of the Income-tax Act, 1961 - Block assessment in search cases - Procedure for - Block period 1-4-1987 to 29-1-1998 - Certain amount was seized from assessee's possession in search proceedings under section 132 - Assessee filed affidavit stating that cash seized was part of amount disclosed by him under Voluntary Disclosure of Income Scheme, 1997 (VDIS) - Assessing Officer considering affidavit filed by assessee came to a conclusion that undisclosed income of assessee was nil and, accordingly, completed assessment under section 158BC - Commissioner, however, initiated proceedings under section 263 holding that affidavit was filed belatedly; that since computer print out of assessee's books were given after assessment order was passed, Assessing Officer had not verified correctness of assessee's contention that statement on date of search was given under pressure; that there was no inquiry as to why assessee was carrying so much cash with him and, hence, order under section 158BC suffered from vice of lack of inquiry and non-application of mind - Accordingly, Commissioner directed to treat seized cash as undisclosed income of assessee and subject it to tax - Tribunal held that as there was no long gap between declaration made under VDIS and date of search and further there was no finding that cash declared under VDIS was either converted into any other assets or was used for incurring any expenses by date of search, order of Assessing Officer was not erroneous and prejudicial to interest of revenue and, therefore, it quashed order passed by Commissioner under section 263 - Whether Tribunal had appreciated evidence and after such appreciation conclusion drawn and finding arrived at was purely finding of fact which did not give rise to any question of law much less substantial question of law - Held, yes FACTS The assessee was intercepted at Airport and was searched under section 132. He was found to be in possession of cash worth Rs. 20 lakhs which was seized. His statement on oath was recorded under section 132(4) on the same date, wherein he stated that the cash seized was out of his undisclosed income and…

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