TMI Blog2014 (11) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... ategoric and undisputed - The assessee in the sworn statement made on 10.10.2006, stated that outstanding loans to the tune of ₹ 25 Lakhs to 30 Lakhs are to be recovered with interest at the rate of 18% - This is a clear admission - This amount has also been calculated and added as undisclosed income - When there is a clear and categoric admission of the undisclosed income by the assessee himself, there is no necessity to scrutinize the documents - The document can be of some relevance, if the undisclosed income is determined higher than what is now determined by the department - loose sheets found during the search are not the sole basis for determining the tax liability - It is a piece of evidence to prove undisclosed income - The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t orders were passed at the fag end of the year without looking into the search materials, ought to have remitted the case to the assessing officer rather than adjudicating the case on merits? 2.1. The brief facts of the case are as under: On 29.8.2006, a search was conducted at the premises of the appellant's father, wherein loose sheets and notings on telephone diaries pertaining to the assessee were found by the department. 2.2. On 27.8.2008, notice under Section 153A read with Section 153C of the Income Tax Act, 1961 (for brevity, the Act ) was issued to the appellant for the assessment years 2001-2002 to 2007-2008, namely, for seven years. In response to these notices, on 14.10.2008, the appellant requested the department to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment orders, the assessee preferred appeals before the Commissioner of Income Tax (Appeals), who dismissed the appeals. 2.5. Assailing the said orders, the assessee went on appeal before the Tribunal, which dismissed the appeals upholding the orders passed by the authorities below. 2.6. Calling into question the said order, the present appeals are filed by the assessee on the questions of law, referred supra. 3. Heard Mr.B.Ramana Kumar, learned counsel for the assessee and Mr.T.R.Senthil Kumar, learned Standing Counsel appearing for the department and perused the documents filed in support of these appeals. 4. The main grievance of the assessee is that the Tribunal has not considered his plea that the Assessing Officer has not s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were from my undisclosed income. I agree to pay the relevant income-tax dues for the above declared undisclosed income.' Sworn statement of Shri Kishore Kumar dt. 10.10.2006 (in Tamil): 'Qn.1: I am showing you Ann/BL/B D/S-3 and sl.No.5, which are telephone index books wherein amounts given in cash to various persons were found recorded. Whom do they belong to? In whose handwriting it is write? What do these amounts represent? Ans: They belong to me. Signature is mine and the notings relate to loans given by me on various dates. This constitutes my separate finance business. There are no regular books for this. According to the documents shown, as on date outstanding loans to be recovered is in the range of ₹ 25 Lakhs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t would constitute a good piece of evidence for the Revenue. 7. The learned counsel for the assessee relied upon a decision of the Delhi High Court in Commissioner of Income Tax v. Girish Chaudhary, [2008] 296 ITR 619 to plead that loose sheets of papers should not be taken as a basis for determining undisclosed income. However, in the case on hand, loose sheets found during the search are not the sole basis for determining the tax liability. It is a piece of evidence to prove undisclosed income. The printout statements of undisclosed income is not disputed by the assessee and in his sworn statements it is accepted. In fact, he admitted that outstanding loans to be recovered are in the range of ₹ 25 Lakhs to 30 Lakhs. We find no er ..... X X X X Extracts X X X X X X X X Extracts X X X X
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