search servey and seizure

investments are less than income, only addition on account of income andnot investment would be sustained.Q. 16 If the premises of an assessee is searched and till date of search he hasnot filed any return of income. Whether such an assessee can file hisreturn of income thereafter?Ans. Yes. Once an assessee is searched and it is found that no return ofincome is filed by him before search. His income for the past 06 yearswould be treated as part of search assessment and tax on the same wouldbe charged at the rates as applied in the relevant assessment.Q. 17 At the time of search if the books of account of the assessee are notcomplete. Whether the same can be completed?Ans. Yes. During the course of search an assessee can complete his incompletebooks of account and explain to the search authorities in respect of anydiscrepancies found.Q. 18 During the course of search if an assessee makes a voluntary declarationin order to put an end to seamless litigation and to buy peace and if theAssessing Officer does not accept the same in its totality. Whether thedeclaration is binding on the assessee?Ans. No. The declaration made by assessee amounts to an offer and if thesame is not accepted in its true spirit and in its totality the same is notbinding on the Assessee. Reliance in this regard can be placed in thefollowing case laws :i) Kishore Meswani Vs. 3rd Additional ITO, BSD(S) Wd ITANo. 7162/Bom/90.ii)Puspa Vihar, Bombay Vs. ACIT, Circle 36(2) Mumbai ITANo. 1822/Bom/90.Q. 19 If the case of Assessee is complicated and the Assessing Officer lacksunderstanding. In such situations what is the remedy available to anassessee?