COMMISSIONER OF INCOME TAX Vs. MUKUNDRAY KUMAR SHAH

JUDGEMENT

(1.) This appeal at the instance of the Revenue is directed against the judgment and order dated April 5, 2004, passed by the learned single judge on the writ application filed by respondent No. 1 herein, being W. P. No. 2445 of 2003. By the said judgment and order the learned single judge disposed of the writ petition and directed the Revenue authorities to release to the writ petitioner/ respondent 9 per cent. R. B. I. Relief Bonds, valued at Rs. 7.2 crores which had been seized during the search and seizure operation under Section 132 of the Income-tax Act, 1961, conducted at the residence of the writ petitioner/respondent No. 1, 2/2, Justice Dwarkanath Road, Kolkata 700 020, on August 24, 2000.

(2.) An application for stay of the said directions contained in the order of the learned single judge has been filed in the appeal and has been taken up for consideration upon due notice to the writ petitioner/respondent. As will appear from the facts disclosed during the course of the hearing and also set out in the stay application, after the search and seizure operation, the assessing authority initiated assessment proceedings against the writ petitioner/respondent, hereinafter referred to as "the assessee", by issuing notice under Section 158BC of the Income-tax Act, 1961, hereinafter referred to as the "said Act". The assessment proceedings were initiated not only against the assessee but also in the names of several members of his family. Pursuant to the said notice, the assessee filed a block return showing nil undisclosed income on March 14, 2001.

(3.) The block assessment against the assessee was completed on November 29, 2002, wherein the Assessing Officer assessed the undisclosed income of the assessee at Rs. 6,57,73,867 and additional demand of Rs. 4,70,96,716 was raised. The income assessed included addition of a sum of Rs. 5,99,00,000 on account of 9 per cent. RBI Relief Bonds held by the assessee as deemed dividend in accordance with the provisions of section 2(22)(e) of the said Act.