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2011 (12) TMI 363 - HC - Income TaxAddition - Block assessment - On the basis of seized documents, recovered during search, relating to purchase of land as also the sworn statement recorded under Section 132(4), the assessing officer computed the undisclosed income - The addition made on account of personal expenses was deleted on the ground that since the assessing officer had made additions with respect to the costly items purchased, there cannot be any further addition on account of personal expenditure - it is evident that the assessee had voluntarily submitted before the Income Tax Officer that the amount shown in the document with respect to purchase of four properties were not the actual amounts and that he had paid more than that shown in the document - The statement given under oath has to be considered in the context of the long prevalent practise of not stating the actual consideration with respect to transactions of immovable properties, for the purpose of evading stamp duty - The admission made by the assessee before the assessing officer corroborated by the title deeds seized in search absolves the department from discharging any burden regarding the additions made on the strength of such admission - In the instant case on the clear admission of the assessee corroborated by the documents the burden on the department ceases to exist. Regarding personal expenditure - The only explanation offered by the assessee for the years 1989-90 to 1992-93 was that his personal expenses in the said years were met by his parents - the approach of the Tribunal is perverse in so far as the additions made for purchase of items is distinct and different from the additions for personal expenses - Decided against the assessee. Regarding addition made of Rs.3 lakhs in the year 1993-94 - The assessee offered absolutely no evidence to prove the transaction and the contradictions regarding the disclosure in the cash flow statement as a NRI loan and the later explanation as a loan received in cash, hits at the root of the genuineness of the transaction - When the assessee had voluntarily disclosed the same in the cash flow statement and had failed to explain the genuineness of the transaction, we are at a loss to understand why the Tribunal insisted on "search materials" to substantiate the addition - Decided against the assessee
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