PRANSUKHLAL AND SONS JEWELLERS AND PRANSUKHLAL BROTHER Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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K.C. Singhal, J.M. -
(1.) ALL these appeals belonging to same group have been heard together and are being disposed of by the common order for the sake of convenience.
(2.) All these appeals are against the orders of the CIT(A) confirming the additions made by the AO in the block assessment proceedings. In the grounds of appeal, the assessees had challenged the additions made by the AO and confirmed by the CIT(A). It is also stated in the grounds that the block assessment orders are bad in law. However, in the course of assessment proceedings, the assessees in the cases of M/s Pransukhlal & Sons Jewellers and M/s Pransukhlal Brothers have raised the additional ground challenging the validity of proceedings initiated under Section 158BD of IT Act, 1961 (the Act). The additional ground being legal one was admitted by us.
First we take up the additional ground raised by the assessee in the above two appeals. The brief facts relating to this issue are these. A search and seizure action was carried out under Section 132 of the Act at the residential premises of partners of the assessee firms on 21st Sept., 2000. In the course of such search proceedings, certain keys belonging to the business premises of the three firms, having common partners, were found. On the basis of such keys, the search party obtained the search warrant in respect of the business premises which resulted in search in respect of the three firms situated in the same building having common entrance. In the course of search, the stocks belonging to all the three firms were inventorised. Subsquently, assessment proceedings were initiated by issue of notice under Section 158BC of the Act in the case of M/s Pransukhlal Jewellers.
(3.) THE assessment was completed on 30th Sept., 2002 determining the undisclosed income at Rs. 5,85,963. By this time, no proceedings were initiated in respect of the other two firms viz., M/s Pransukhlal & Sons Jewellers and M/s Pransukhlal Brothers. THE assessment orders in respect of these two firms show that satisfaction note was drawn under Section 158BD and then notices under Section 158BC were issued and served upon the assessees on 10th Jan., 2003. THE assessment in the case of M/s Pransukhlal Brothers was completed on 31st Jan., 2005 determining the undisclosed income at Rs. 31,92,740. Similarly, the assessment in the case of M/s Pransukhlal & Sons Jewellers was completed on 31st Jan., 2005, determining the undisclosed income at Rs. 18,84,131. THE additions made by the AO were confirmed by the CIT(A).;
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