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TMI Blog2011 (7) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment year 2000-01 of the Appellant for which the due date for filing the return of income had not expired as on the date of search? 2. Whether on the facts and in the circumstances of the case, the impugned addition of Rs.6.5 lakhs as cash credit under Section 68 of the Act was required to be made in the block assessment of the Appellant as held by the Tribunal or the same was required to be considered only in the regular assessment of the Appellant for the assessment year 2000-01? 3. Whether the provisions of Section 158BB(2) of the Act are applicable to the Appellant's case to justify the addition under Section 68 of the Act in the block assessment of the Appellant when the credits are found in the regular boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the computer was seized. The cash book is for the period 01.04.1999 to the date of search and in the cash book there was an amount of Rs.15 lakhs shown as cash suspense. In the statement recorded on 12.06.2000, the assessee explained the cash receipts to the extent of Rs.15 lakhs by furnishing the details as to from whom the amounts were received towards advance for supply. He gave the name of ten persons from whom he has received the amount. The Assessing Authority while concluding the block assessment has made an addition to the tune of Rs.6,50,000-00 relatable to the six persons holding that the explanation given by them were unsatisfactory. The Assessing Authority declined to accept the assessee's claim that it had identified the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In spite of the same, the addition was made in the assessment of the assessee. The Assessing Authority had also levied interest under Section 158BFA (3) of the Act to the tune of Rs.11,44,866-00. 3. Aggrieved by the said impugned addition, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals) who, by order dated 24.05.2002 deleted the impugned addition and also directed the Assessing Authority not to levy interest. The Commissioner of Income Tax found that cash credit of Rs.15 lakhs found in the books of the assessee from 01.04.1999 to the date of search related to the assessment year 2000-01 and the return of income for the relevant assessment year was not due as on the date of search. Further, the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said amount is received, with the amount received. To the extent of Rs.6,50,000-00, the Assessing Authority did not accept the explanation offered by the assessee, as on the date of search, the due date for filing the return in respect of the said entry was not over. It is in those circumstances, it was contended that in the first place, it was not an undisclosed income as necessary entry was found in the account book. Assuming that if the explanation offered is not acceptable, then in the regular assessment the authorities could have invoked Section 68 and disallowed the same as unexplained income. But once it is disclosed in the accounts and the last date for filing the return is not yet over, it could not constitute undisclosed incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the premises of the partner of the assessee and categorically stated that the said amount do not relate to the assessee. There is nothing in those documents to connect those expenditure to the assessee. In those circumstances, when the said material was not seized at the time of search of the assessee's premises and in no way it is connected with the assessee, the same cannot be the subject matter of the block assessment. Again the Tribunal committed a serious error in interfering with the reasoned order passed by the appellate Commissioner. Therefore the said finding also requires to be set aside. 10. In so far as levy of interest is concerned, it is not in dispute that at the time of seizure, cash was seized and kept in the PD ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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