9911796707
TMI Blog2000 (3) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... 158BD was issued and served upon the assessee on14th Dec, 1996. In response to that, the assessee furnished return in Form No. 2-B declaring Nil as the undisclosed income. The AO passed the block assessment order on26th Dec, 1997. Shri O.P. Sapra, the learned counsel for the assessee, at the outset, contended that the assessment order made on26th Dec, 1997was barred by the limitation. In support of his contention, he contended that the search was conducted on 11th Sept., 1995 at the residential premises of Shri Ravi Prakash Agarwal living at 1127, P.L. Sharma Road, Meerut and the office of M/s Multi-Max Engineering Works was situated at 1127/A. P.L. Sharma Road, Meerut. He contended that the books of accounts were seized from the premises of assessee and, therefore, the date of search in the case of assessee should be considered as11th Sept., 1995and the AO was not justified in making assessment under s. 158BC r/w sub-s. 158BD. He submitted that the case of assessee fell strictly within s. 158BC and, therefore, the time-limit available for completion of block assessment should be considered as provided under s. 158BE(1). Keeping into consideration, the date of search as 11th Sept. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oubted the genuineness of these creditors and asked the assessee to produce 18 depositors. All the 18 depositors were produced by the assessee and were examined by the AO. The AO was not satisfied with the explanation furnished by these depositors and accordingly added the following amounts to the undisclosed income of the assessee: -------------------------------------------- Sl. No. Asst. yr. Amount of cash credit Rs. -------------------------------------------- 1. 1987-88 1,13,000 2. 1989-90 &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment in respect of those years, there is no warrant for making roving enquiries in respect of the items forming part of those returns, in the absence of any material found during search establishing the existence of undisclosed income. No such material having been found in the course of search and seizure operations, there is no point in sustaining this addition. In the result, these amounts are excluded from the undisclosed income computed by the AO. 4. The next ground relates to addition made by the AO on account of sarson business for the asst. yr. 1992-93. The facts relating to this addition are that during the examination of cash book and ledger for the said assessment year, the AO found that purchases and sales of sarson were not recorded in the ledger. Only the entries were made in the cash book. On being enquired about it, the assessee furnished copy of its account from the books of M/s Bateria Brothers, Hisar. For further verification, an Income-tax Inspector was sent to Hisar who found that M/s Bateria Brothers was not in existence at that time. He conducted local enquiries and came to know of the fact that Shri Bharat Kumar Garg was the proprietor of the said conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings, the assessee was called upon to explain the contents pt this pad. The assessee explained some of the entries from that pad. The AO noted that some of the amounts were not recorded in the regular books of accounts and hence the sum of Rs. 5,03,927 based on page No. 1 of Annexure A-21 and a sum of Rs. 4,12,199 based on page No. 46 of the same annexure pertaining to asst. yr. 1993-94 were treated as undisclosed income of the block period. Similarly, an addition of Rs. 5,164 for asst. yr. 1996-97 (up to11th Sept., 1995) on account of expenditure for diesel and postage was made by the AO while framing the block assessment. 5.1. Before us, the learned counsel for the assessee contended that the assessee during the course of block assessment proceedings had specifically made denial about these loose papers as belonging to it or its business. It was further contended that these papers were not in the handwriting of either the assessee or any of its employees. It was stated by the learned counsel that during the course of proceedings before the AO the assessee requested for supply of photocopies of these documents. But these were supplied just two weeks prior to the complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstruction in its books of accounts which was accepted by the Department. It was not the case of the Revenue, the learned counsel contended that same material was found in the course of search which could justify the matter of reference to the VO. The learned counsel concluded his submissions by stating that under these circumstances no addition could be made on this count. For this proposition, he placed reliance on the decision of the Tribunal in Esscon Intra-Port Services (P) Ltd. vs. Asstt. CIT (2000) 72 ITD 228 (Hyd). On the other hand, the learned Departmental Representative drew our attention to the provisions of s. 158BB(2) wherein it is stated that the provisions of s. 69B would apply in the case of block assessment also. The took us through the provisions of s. 69B and contended that if the assessee had not fully disclosed the investments in its books of accounts, the AO was not barred from referring the matter to the VO. 7. We have considered the rival submissions in the light of material placed before us and precedent relied upon. It is obvious that the assessee had shown investments in its books of accounts and accordingly the returns of income were filed after duly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
