Is it possible to make reassessment of a case completed in block assessment?

In CIT v Peerchand Ratanlal Baid ( ITA No. 19 of 2006) decided on 15.05.2009 the Gauhati High Court held that even block assessments made could be subjected to reassessment by invoking secs. 147 and 148 of the Act. This judgment dissented from Gujarat HC decision in the case of Cargo Clearing Agency (307 ITR 1) in which it was held that the block assessment could not be reopened by resorting to reassessment provisions. In Western India Bakers (87 ITD 607) the decision was similar to Gujarat HC decision. The Supreme Court in Suresh Gupta case 297 ITR 322 held that reassessment is possible even for block assessment. However in Vatika Township 314 ITR 338 due to doubt the same matter was referred to larger Bench by the Apex Court.

If search warrant is issued in joint names, the assessment must be in the status of AOP or BOI

In CIT v Vandana Verma [ ITA no 21 of 2009) the Allahabad High Court held that if the search warrant is issued in joint names the block assessment cannot be made in the individual names of the parties. It was held that the assessment must be made in the status of AOP or BOI since the presumption is - the undisclosed income or asset is jointly owned or earned by the searched parties.

Application of section 14A for disallowance of expenses

In CIT v Hero Cycles Ltd(P&H) (ITA 331 of 2009) the revenue perferred appeal against decision of the tribunal deleting disallowance of expenditure made by the AO. The court held that the tribunal had factually found that the assessee had made investments from own funds . Since the borrowed funds were not applied for making investments in tax exempt schemes, the disallowance made by the Revenue was held as unjustified. Accordingly, the appeal of the revenue was dismissed by the court.