The Court held that AO while making block assessment is entitled to proceed on best of judgment and make estimations for the block period. Accordingly, when no material was found in the course of search in respect of prior years, the Court held that the AO was justified in using the material recovered disclosing suppression to make addition on the basis of estimation for the earlier years as it cannot be assumed that a dealer who praises suppression would retain the material disclosing suppression for long period. (BP 1990-91 to 2-.03.2000)(ITA No. 19 of 2011 dt. 10.01.2019)
CIT v. Orma Marble Palace (P) Ltd. (2019) 308 CTR 584 / 177 DTR 350 / 110 taxmann.com 186 (Ker.)(HC) Editorial: SLP of the assessee is dismissed Orma Marble Palace (P) Ltd v CIT ( 2019) 267 Taxman 436 (SC)
S. 69 : Unexplained investments–evidence found during the course of search in respect of later years and not in respect of prior years–Held, such evidence can be used to make estimations even for the earlier years. [S. 158BB]