TMI Blog2010 (8) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence found in the course of search because undisclosed income in the block assessment is to be computed on the basis of material found in the search proceedings and the valuation report was admittedly not during the course of the search and was obtained as by the department subsequent thereto. – Held that: - in the present case, no evidence much less incriminating evidence was found as a resu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent-assessee's residence by the Income Tax Department. While unexplained cash of ₹ 68,943/- and FDR of ₹ 54,943/- was found during the search, no evidence was found suggesting a higher valuation for the property bearing No. A-156, New Friends Colony, New Delhi. However, the Assessing Officer solely on the basis of report of the District Valuation Officer made an addition of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for treating the difference as income of the assessee. The order of the CIT(A) in deleting the same by following the decision in the case of K.P. Varghese, reported supra is perfectly justified and is accordingly upheld." 5. Ms. Rashmi Chopra, learned counsel for the revenue submitted that the Tribunal had erred in law in deleting the addition of ₹ 99,33,000/- as undisclosed income of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. In the present case, we find that the Tribunal decided the matter rightly in favour of the assessee inasmuch as the Tribunal came to the conclusion that the Assessing Authority (AO) could not have referred the matter to the Departmental Valuation Officer (DVO) without books of accounts being rejected. In the present case, a categorical finding is recorded by the Tribunal that the books we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act, 1961. The AO has to apply his mind to the information, if any, collected and must form a belief thereon. In the circumstances, there is no merit in the Civil Appeal. The Department was not entitled to reopen the assessment. Civil appeal is, accordingly, dismissed. No order as to costs." 9. Moreover, in the present case, no evidence much less incriminating evidence was found as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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