BHARUKA, J. ( 1 ) THIS Departmental appeal has been filed under Section 260-A of the Income Tax Act, 1961 (in short, the Act) against the order dated 31. 10. 2001 passed by the Income Tax Appellate Tribunal, Bangalore Bench B in I. T. (SS)A No. 12/bang/99 It pertains to a block assessment made against the assessee for the period 1989-90 to 1999-2000 made under Section 158 of the Act. The substantial question of law which has fallen for our consideration is Whether on the facts and circumstances of the case the findings arrived at by the Tribunal for cancelling the block assessment in question are perverse being contrary to the materials on record and have been arrived at on conjectures and surmises. Foundational Facts: ( 2 ) THE assessee is an individual. At the material time he was the Managing Director of M/s Mayura Hotels Pvt. Ltd. , and M/s Swathi Hotels Pvt. Ltd, Bangalore. He was also a partner in Hotel Mayura in Bellary and M/s Shanthakumar Ganeshlal Enterprises, Bangalore. He was also carrying on a proprietorship hotel business in the name and style M/s New Prakash Bhavan at Bangalore as a kartha of his Hindu undivided family. He was being regularly assessed for the income derived from these concerns as also the other sources disclosed by him. ( 3 ) ON the basis of some information that the assessee had made unaccounted investment, search under Section 132 of the Act was conducted in his premises on 27. 5. 1998. During search, unaccounted investments in the form of shares, Cash certificates, Indira Vikas Patras and Fixed Deposits were found. Therefore, all such certificates and deposit receipts were seized. Photo copies of the inventory prepared at the time of seizure containing details of investments the date of such investments and the amounts, have been placed before us. These details are not in dispute. ( 4 ) ON 5. 6. 1998 statement of the assessee was recorded under Section 132 (4) of the Act wherein he admitted that he had made undisclosed investments during the block period. Based on his statement, a further search was conducted in his premises on 9. 7. 1998. Subsequently, a notice was issued to him under Section 158 BC of the Act requiring him to file return for the block period in question. Based on his statement, a further search was conducted in his premises on 9. 7. 1998. Subsequently, a notice was issued to him under Section 158 BC of the Act requiring him to file return for the block period in question. The return was filed on 27th October 1998 in Form 2b as prescribed under the Income Tax Rules, 1962 (in short, the Rules) showing Rs. 72,00,000/- as the total undisclosed income of the Block period. For Computing the undisclosed income, the assessee had taken into account the income assessed for the assessment years 1989-90 to 1997-98 and the income of Rs. 1, 11,92, 450/- for the assessment year 1998-99 for which he was yet to file his regular return and Rs. 5,00,000/- estimated income for the assessment year 1999-2000. ( 5 ) TWO days later, on 29. 10. 1998, the assessee filed his regular return for the assessment year 1998-99 as well showing his total taxable income at Rs. 1,11,92,450/. , The Assessing officer completed the regular assessment for the assessment year 1998-99 by accepting the returned income under section 143 (3) of the Act. Still the assessee preferred an appeal against the order which was dismissed by the CIT (Appeals ). The assessee did not prefer to go in any further appeal. Therefore, the regular assessment order for the year 1998-99 attained its finality. ( 6 ) SO far as the block assessment is concerned, after due notice to the assessee and on hearing him, assessment order was passed on 27. 1. 1999 assessing him on a total income of Rs. 80,81,358/ -. The assessee assailed the block assessment order before the CIT (Appeals), who granted partial relief by order dated 23. 4. 1999. Consequent to this relief, the income from undisclosed sources reduced to Rs. 77, 51,986/ -. The assessee questioned the order of the CIT (Appeals) before the Tribunal. The Tribunal accepting the plea of the assessee that the entire undisclosed income was covered by the regular assessment made for 1998-99, cancelled the block assessment. REASONS ASSIGNED BY THE TRIBUNAL: ( 7 ) IT is not in dispute that the assessee had produced a cash book/day book before the Assessing officer for the period 1. 4. 1997 to 31. 3. 1998 being the previous year pertaining to the assessment year 1998-99. This book contained two entries on 7. 4. 1997. REASONS ASSIGNED BY THE TRIBUNAL: ( 7 ) IT is not in dispute that the assessee had produced a cash book/day book before the Assessing officer for the period 1. 4. 1997 to 31. 3. 1998 being the previous year pertaining to the assessment year 1998-99. This book contained two entries on 7. 4. 1997. The credit side showed cash receipts of Rs. 90 lakhs and the debit side reflected the investment of entire Rs. 90 lakhs in the form of Bank F. Ds, IVPs, and other investments. This entry reads as under: