TMI Blog2003 (12) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... We have heard the arguments of both the sides and also perused the relevant material on record. At the outset, we may observe that there is a delay of 106 days in filing this appeal by the assessee. In this regard, the assessee has filed an application dt. 3rd Aug., 2002, praying for condonation of the said delay and keeping in view the reasons given therein as well s the affidavit of Shri O.P. Singhania filed in support, we have condoned the delay of 106 days in filing the present appeal by the assessee. 3. As regards ground No. 1, it is observed that a search was conducted at the residential premises of the assessee on 21st July, 1999. A statement of the assessee was recorded on 12th Aug., 1999 on oath in which he surrendered undisclose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture in fact was incurred by the assessee and the said surrender was made in the statement under the compelling circumstances. His contention was that the AO, however, added the difference amount of Rs. 1,04,454 to the undisclosed income of the assessee merely relying on the surrender of Rs. 2,50,000 made by the assessee in his statement without considering that there was nothing found during the course of search to support and substantiate the said addition. The learned Departmental Representative, on the other hand, has not been able to rebut or controvert the submission made by the learned counsel for the assessee that no material or evidence was found during the course of search to show that any unexplained expenditure was actually in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... att vs. Asstt. CIT (2000) 66 TTJ (Mumbai) 817 : (2000) 73 ITD 205 (Mumbai), the Mumbai Bench of the Tribunal has held that block assessment is separate and distinct from regular assessment and in the block assessment, addition can be made only on the basis of material found during the course of search. As such, considering the facts of the case and keeping in view the legal position emanating from the aforesaid judicial pronouncements, we are of the view that the addition made by the AO amounting to Rs. 1,04,454 was outside the purview of the block assessment and the learned CIT(A) was not justified in confirming the same. His impugned order on this issue is, therefore, reversed and the AO is directed to delete the said addition. 4. As re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned CIT(A), however, found no merits in the submissions made on behalf of the assessee and proceeded to confirm the additions made by the AO on this count for the following reasons given on page Nos. 3 and 4 of his impugned order: "I find from the records that the appellant has withdrawn amount from the various banks for the purpose of foreign tour which have duly been recorded in the books of account. The foreign exchange which has not been spent by the appellant should have been deposited back in the account. But same has been claimed as business expenses by way of tour. The AO treated the income of Shri H.P. Gupta for the block period. The appellant argued that the amount is not a concealed one as the same has been withdrawn from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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