While carrying out block assessment, the AO is entitled to proceed on the basis of his best judgment and can make estimations for the period. However, he must restrict himself to the aspects which have a direct correlation with the materials, transactions etc. discovered during the search. In carrying out the estimation exercise, he may refer to the material found out during the search as well as the material available with him. The AO can also refer to the balance sheet obtained from the bank pursuant to enquiry conducted after the search. Appeal of the revenue is partly allowed.(BP.1990-91 to 2-03 – 2000)
CIT v. Orma Marble Palace (P) Ltd. (2019) 177 DTR 350 / 308 CTR 584/ 110 Taxman .com 435 (Ker.)(HC)Editorial: SLP of the assessee is dismissed Orma Marble Palace (P) Ltd v CIT ( 2019) 267 Taxman 436 (SC)
S. 158BB : Block assessment–Computation-Undisclosed income– Estimation of profits can be made on the basis of both, material recovered in the search as well as the material available with the AO-Appeal of the revenue is partly allowed.