COMMISSIONER OF INCOME TAX Vs. C. SIVANANDAN

JUDGEMENT

(1.) This Appeal is filed by the Revenue challenging the order of the Tribunal declaring the income escaping assessment made under S.147 of the Income Tax Act (hereinafter referred to as the Act for short) on the respondent assessee for the assessment year 1992-93 as invalid.

(2.) We have heard learned Senior counsel appearing for the Revenue and Shri. Arun Raj, learned counsel appearing for the respondent assessee.

(3.) Return filed by the assessee for the assessment year 1992-93 was initially processed under S.143(1)(a) and thereafter a scrutiny assessment was made under S.143(3) of the Act. A search was carried out in the residential and business premises of the assessee on 25/11/1998 and block assessment under S.158BC was made for the block period from 01/04/1988 to 25/11/1998. In the block assessment specific additions were made for the assessment year 1992-93 representing arbitration award amount received by the assessee and also interest on various Bank deposits maintained in the name of assessee's relatives. It is pertinent to note that the Assessing Officer assessed only the interest from these deposits as assessee's income and the deposit amounts in the names of the relatives were not assessed as undisclosed income of the assessee for the year 1992-93 which fell within the block period.