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2019 (12) TMI 690 - ITAT CHENNAI“Undisclosed income” u/s.158BA - Search and seizure operations u/s. 132 - HELD THAT:- Based on the material unearthed by the Revenue during the search operations, it was found that certain expenses or deduction or allowances claimed by the assesssee was found to be false and a part of such expenses or deduction or allowances were also admitted to be sources for the expenditure unearthed from the same search operations in the cases of Mr. Mohan, Mrs Geethalakshmi, (w/o Mohan) and Sanjay Mohan (S/o Mohan). Therefore, these material fall within the scope of “undisclosed income” U/s.158BA viz “any income based on any entry in the books of account or other documents or transactions, where such thing, entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act or any expense, deduction or allowance claimed under this Act which is found to be false”. When the assessee itself admitted an undisclosed income based on part of the seized material , which had attained finality, then , it can not plead that the addition made based on the other part of the seized material, which were unearthed in the same search and seizure operations, would not fall as an “undisclosed income” within the scope of Section 158 BA. With regard to the genuineness of the transaction with M/s. J S Agency, as pleaded by the ld. Sr. Standing counsel, supra, the AO after due consideration of the seized material, the statements recorded at the time of search, the statement recorded from the parties subsequently and on due analysis of the additional evidence produced by the assessee has clearly recorded the reason as to why such claim cannot be accepted and how the assessee has failed to prove that the impugned payment was made to Mr.Selvam and Mr. Inbaraj. It is clear from the order of the CIT(A) that the assessee has not laid any material assailing the findings recorded by the AO and hence, the ld CIT(A) confirmed the impugned additions. Before us also, the assessee has not filed any material assailing the findings recorded by the lower authorities. Therefore, we do not find any reason to interfere with the orders of the lower authorities on the quantum. Therefore, the assessee’s contention that the disallowance of expenses made by the AO cannot be treated as an assessment of an “undisclosed income” within the scope of Section 158 BA, is held as untenable. Thus, all the grounds of the assessee fail and therefore the assessee’s appeal is dismissed.
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