9911796707
TMI Blog2010 (1) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... course of search in the place of another person by name Sri Anandan, who along with the respondent-assessee was a partner in M/s. Hotel Indraprastha. We have heard senior counsel appearing for the revenue and Sri T.M. Sreedharan, counsel appearing for the respondent-assessee. 2. The facts leading to the dispute are the following. The respondent-assessee was employed abroad for a long period and during his stay outside and after return he has made certain investments in business particularly in a bar hotel as its partner, along with one Sri Anandan, Respondent was not an assessee under the Income-tax Act and has not filed any returns under the Income-tax Act until notice was served under Section 158BC read with Section 158BC of the Act aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jurisdiction. The alternate contention was against various additions sustained in assessment. The CIT (Appeals) though upheld the assessment granted certain modifications to the amount assessed for the block period. The department filed appeal against the order of the CIT (Appeals) modifying the assessment and assessee file cross-objections challenging that part of the order of the CIT (Appeals) upholding block assessment. The Tribunal after hearing both sides allowed the cross-objections and since cross-objections was allowed cancelling the assessment, the departmental appeal for restoring the deletions made by CIT (Appeals) was rejected as infructuous. It is against this order of the Tribunal that the Department has filed this appeal rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee and found acceptance by the Tribunal was that the assessment is not based on any evidence or material gathered in the course of search conducted in the premises of Anandan. However, the case of the department is that for proceeding for assessment against the assessee under Section 158BD is the Balance Sheet and other documents seized pertaining to the firm, M/s, Hotel Indraprastha in which the respondent assessee had admittedly made investments and was earning share of profit. The assessee does not deny the investments made by him in the firm and his eligibility to earn profit therefrom. However, the assessee's contention is that the assessment is based on cash flow statement furnished by him which cannot be the basis for making asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound as a result of search or requisition of books of account or other documents and such other materials or information as are available with the assessing officer and relatable to such evidence as reduced by the aggregate of the total income referred to in the clauses stated therein. 4. The question to be considered is whether the Tribunal's finding that assessment in this case is based on cash flow statement furnished by the assessee is correct or not. We have to necessarily disagree with the Tribunal's finding because the main document based on which proceedings for assessment were initiated against the assessee is the Balance Sheet of the firm, M/s. Hotel Indraprastha seized from Anandan which showed substantial investment by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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