Case Study: Commissioner Of Income Tax, Chennai Versus vs. Ajit Kumar

In an appeal filed before the Hon'ble Supreme Court i.e Civil Appeal Nos. 10164, 10165 of 2010, 10917 of 2013, 4449, 5255 of 2015, the question raised for consideration was, whether the material found in the course of a survey, in the premises of a builder can be included in Block Assessment of the assessee.

FACTS

The office and residence of a Tamil cine actor were searched on July 17, 2002. This search was concluded on August 21, 2002. Evidence was found during the search that the assessee had indulged in an understatement of his real income relating to the block period from 01.04.1996 to 17.07.2002. On the same day, a survey under section 133A of the Income Tax Act, 1961, was also conducted on the premises of M/s. Elegant Constructions and Interiors Ltd. (hereinafter referred to as "Elegant Constructions"). Elegant Constructions was also the builder and interior decorator who had constructed and decorated the assessee's residential house at Seaward Road, Valmiki