2014 (11) TMI 322 - MADRAS HIGH COURT

Materials properly scrutinized or not - Whether the Tribunal has not considered the plea of the assessee that the AO has not scrutinized the materials submitted before him and made additions based on a priori considerations – Held that:- The case of the assessee was decided on the basis of his own sworn statements dated 29.8.2006 and 10.10.2006 and admitted documents - with regard to the undisclosed income of ₹ 52,73,920/- supported by printouts, in the sworn statement dated 29.8.2006, the assessee says that he had separate business income which was not included in his income tax returns - admission of undisclosed income is categoric 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 printout statements of undisclosed income is not disputed by the assessee and in his sworn statements it is accepted - outstanding loans to be recovered are in the range of ₹ 25 Lakhs to 30 Lakhs – thus, the order of the Tribunal is upheld – Decided against assessee.