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TMI Blog2013 (8) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... Nursing Home by name K.P.M Memorial, of which he is the proprietor. A search under section 132 of the Income Tax Act (hereinafter referred to as 'the Act') was conducted in the residential premises of the assessee on 4-2-1999. Subsequently, the assessee filed return of income on 29-4-1999 for the block period of 1-4-1998 to 4-2-1999 declaring Rs. 1,66,66,490/- as undisclosed income in response to the notice dated 17.3.1999. During the search, FDs, CDs and KVPs were seized. While completing the assessment under section 158 BC, the Assessing Officer added a sum of Rs.91,62,048/- apart from the undisclosed income declared by the assessee for a sum of Rs. 1,66,66,490/-. Therefore, the total undisclosed income came to Rs.2,58,28,540/-. A demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and stock of medicines in Hospital without there being any documentary evidence available on record? 5. First substantial question of law: The undisclosed income by way of FDs, Kisan Vikas Pathras which is added by the Assessing Authority amounts to Rs. 19,24,190/-. These FDs were made during 1-4-1988 to 4-2-1999. The Block Assessment Period is 1-4-1998 to 4-2-1999. For the financial year 1-4-1998 to 31-3-1999, the last date for filing the returns is July, 1999. Therefore, the assessee could have filed returns by disclosing this income in the said returns and also paid tax. In this context, the Tribunal held that the aforesaid amount cannot be treated as undisclosed income for the reasons that such investments are out of professional re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt is not considered as undisclosed income, the interest accrued thereon cannot be construed as undisclosed income and in the returns filed by the assessee, that income is also shown and tax is paid. 7. The benefit given to the assessee under section 80L of the Act was not challenged by the revenue before the Tribunal. Therefore, in the appeal before this court, that cannot be the subject-matter of the appeal. Accordingly, the said issue requires to be deleted and not answered. 8. Third substantial question of law: Insofar as the agricultural income is concerned, the material on record clearly discloses that the assessee owned 10 acres 30 guntas of land along with his brother. The brother was looking after the agricultural operations. Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his name as the ultimate beneficiaries of the same would be his brother and his son. In the light of evidence on record, it cannot be said that the said reasoning of the Tribunal is perverse and calls for interference. In that view of the matter, we do not see any justification in the said finding and accordingly, this substantial question of law is also answered in favour of the assessee and against the revenue. 9. Fourth substantial question of law: The Assessing Authority had added the value of car, education expenses and stock of medicines in the hospital, in the absence of documentary evidence. Countering the said argument, the assessee has pointed out the in the accounts prior to 1998, there was huge opening balance from which all th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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