HON’BLE THE CHIEF JUSTICE SRI MADAN B. LOKUR AND THE HON’BLE SRI JUSTICE SANJAY KUMAR ITTA No.30 of 1999 9th December, 2011 Between: The Commissioner of Income-Tax, Visakhapatnam. … Appellant And M/s. Essem Intra-port Services (P) Ltd., Visakhapatnam. … Respondent Counsel for the appellant : Sri S.R. Ashok, Standing Counsel for Income-Tax Counsel for the respondent : THE HON’BLE THE CHIEF JUSTICE SRI MADAN B. LOKUR AND THE HON’BLE SRI JUSTICE SANJAY KUMAR ITTA No.30 of 1999 JUDGMENT: (per the Hon’ble the Chief Justice Sri Madan B. Lokur) The issues raised in this appeal ﬁled under Section 260A of the Income-Tax Act, 1961 are similar to the issues raised in ITTA No.29 of 1999 (Commissioner of Income-Tax v. B. Satyanarayana). The assessee in ITTA No.29 of 1999 is one of the Directors in the respondent company. 2. Two substantial questions of law framed for consideration in this appeal are as follows:- “1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justiﬁed in holding that the unearthed or detected income in the course of a search cannot be assessed in the block assessment merely on the ground that the assessee had disclosed basic transactions in the regular books of account? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justiﬁed in holding that the income which is capable of investigation in a regular assessment cannot be considered in block assessment even if the material has not been unearthed to indicate probabilisation of concealment of income?” 3. For the reasons mentioned in ITTA No.29 of 1999, both the questions are answered in the aﬃrmative, in favour of the assessee and against the Revenue. ___________________ MADAN B. LOKUR, C.J. 9th December, 2011. ________________ SANJAY KUMAR, J. ARS