TMI Blog2007 (5) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... s does not lead to any inference that either the purchase consideration or the cost of improvement has been understated. Since no document was found in the course of search leading to any adverse inference about the understatement. Thus, no computation of undisclosed income could have been made by resorting to the provisions of Chapter XIV-B of the Act. Hence, we hold that there is no basis for making an addition on account of undisclosed income in the present case and we do not see any reason to differ with the finding arrived at by the Tribunal. No fault can be found with the view taken by the Tribunal. Thus, the order of the Tribunal does not give rise to a question of law, much less a substantial question of law, to fall within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty during financial years 1996-97 to 1999-2000. Further, this property had been let out by the assessee to a multinational company for a monthly rent of ₹ 75,000 along with interest free advance of ₹ 1.25 crores. The AO opined that the assessee has received sum of ₹ 1.25 crores as security and thus the value as declared by the assessee in return of income appeared to be grossly understated and he referred the matter for valuation of the property to DVO. As per valuation report the value of this property was determined at ₹ 3,04,62,000 and the assessee was confronted with this valuation report to which he raised objections stating that the property was given on rent with effect from 1st Feb., 2001 and ₹ 18 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch would amply cover this property and bring it within the ambit of provisions of Chapter XIV-B and all the incriminating documents as well as ownership papers gave sufficient authority under the law to the AO to examine the question of investment in the said property and make a reference to the DVO. 7. Sec. 158B of the Act is a part of Chapter XIV-B dealing with special procedure for assessment of search cases. The chapter contains section 158B to section 158BH. Block period and undisclosed income have been defined in clauses (a ) and (b) to section 158B, for the purpose of the chapter. We are concerned with the definition of undisclosed income . The provision in its entirety reads as follows: (b) 'undisclosed income' i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the regular assessment already done or to be done. The assessment for the block period can only be done on the basis of evidence found as a result of search or requisition of books of account or documents and such other materials or information as are available with the AO. Evidence found as a result of search is clearly relatable to sections 132 and 132A. 10. In the present case, during the search, only ownership papers of the property were found and seized. No other incriminating document was found which may show that there was understatement of the purchase consideration or the cost of improvement. The papers with regard to the own ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
