S.B. Sinha, J. - (1.) Leave granted.
(2.) Interpretation/ application of Section 127 of the Income Tax Act, 1961 (for short, "the Act") vis-Rs. -vis the provision regarding Block Assessment is in question in this appeal which arises out of a judgment and order dated 2.4.2004 passed by the High Court of Kerala at Ernakulam in ITA No. 172 of 2000 and WPC No. 23449 of 2003. A search was conducted by the Officers of the Income Tax Department in the residence as also in the business premises of the assessee, his sons and other associates, consequent whereupon, it was proposed to transfer the cases pertaining to the assessee to the Income Tax (Inv.) Circle, Calicut to facilitate effective and coordinate investigation. An order was passed to that effect by the Chief Commissioner of Income Tax, Bangalore under Section 127(2) of the Act. A notice was issued by the Assessing Officer under Section 158BC of the Act to file a return setting forth the total income including the undisclosed income for the block period. The assessee filed a writ petition in the High Court of Karnataka challenging the said order of transfer of cases passed by the Chief Commissioner of Income Tax. The said writ petition was dismissed. Writ Appeals preferred thereagainst were also dismissed. A notice was thereafter issued by the assessing authority asking the assessee to file a return setting forth the total income including the undisclosed income for the block period. Pursuant thereto, the return was filed. The purported undisclosed income of the assessee was determined. The said order of the Assessing Officer, Calicut was challenged on the ground that he had no jurisdiction to make the block assessment as the authority therefore remained with the Assessing Officer originally having the jurisdiction over the assessee.
(3.) A Division Bench of the High Court by reason of the impugned judgment opined that the provisions of Section 127 of the Act can also be resorted to for a block assessment.;