Section 158BC, of the Income-tax Act, 1961 - Block assessment in search cases

IT : Where assessee was neither searched nor assets were recovered from him and there was no warrant of authorization in name of assessee, addition as undisclosed income during block assessment was not sustainable

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[2015] 55 taxmann.com 293 (Allahabad)

HIGH COURT OF ALLAHABAD

Commissioner of Income-tax, Allahabad

v.

Anil Kumar Chadha*

TARUN AGARWALA AND DR. SATISH CHANDRA, JJ.

IT APPEAL NO. 86 OF 2011

WRIT TAX NO. 572 OF 2012†

FEBRUARY  18, 2015

Section 158BC, of the Income-tax Act, 1961 - Block assessment in search cases - Procedure for (Search and seizure, condition precedent) - Block period 1-4-1988 to 3-5-1998 - Police recovered certain sum of money from three persons - Said persons stated that money belonged to assessee - Matter was referred to Income-tax department - Department issued a notice under section 158BC to assessee and made addition as undisclosed income - However assessee was neither searched nor assets were requisitioned from him under section 132A - Further, there was no warrant of authorization in name of assessee - Whether section 158BC was not applicable in assessee's case - Held, yes - Whether addition of undisclosed income was not justified - Held, yes [Para 17] [In favour of assessee]