TMI Blog2011 (4) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... for the block period - Decided against the assessee - ITA No. 389 of 2009 - - - Dated:- 6-4-2011 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ.. Mr. D.K. Goyal, Advocate for the appellant. Mr. Tajendar K. Joshi, Standing counsel for the respondent. AJAY KUMAR MITTAL, J. 1. This order shall dispose of ITA Nos. 389 and 390 of 2009 as according to the learned counsel for the parties, identical questions are involved therein. For brevity, the facts are being extracted from ITA No. 389 of 2009. 2. ITA No. 389 of 2009 was admitted by this Court vide order dated February 17, 2010 for determination of the following substantial questions of law:- 1. Whether on the facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal. Hence, the present appeal by the assessee. 4. We have heard learned counsel for the parties. 5. The point that arises for consideration in these appeals is whether the Tribunal was right in sustaining the addition which had been made by the Assessing Officer by adopting mathematical and multiplication formula inasmuch as the material which was seized from the assessee relating to 112 days whereas the addition on account ofunaccounted production has been made for the entire period during the block period. 6. In the case of the assessee, the Tribunal had applied mutatis mutandis the decision in the case of Mohan Lal (IT/SS No. 8/CHANDI/2003) being identical on facts. It would be advantageous to refer to the finding of the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the block period in question. This is disputed by the assessee on the ground that the unrecorded sales be computed only with respect to the available seized material and not on a hypothetical basis. The logic advanced is that if it is not so done it would mean that income on purely estimated basis is assessed under Chapter XIV-B of the Act, which is impermissible as per law. In our view this logic is not applicable to the facts of the present case. In para 13 of our order we have referred to two elements which are to be satisfied before an income can be assessed as 'undisclosed income' within Chapter XIV-B of the Act. Firstly income should be such which is undisclosed and secondly that such non-disclosure should spring from the search ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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