9911796707
TMI Blog2007 (5) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred to as 'Act') was carried out at the residential premises of the assessee on 17th Dec., 1999 during which, various documents were found and seized. Notice under section 158BC was issued on 5th July, 2001 and in pursuance thereof assessee filed his return for the block period declaring undisclosed income of Rs. 1,64,667. It was noticed by the AO that during the search, certain papers relating to property situated at 3, Club Road, Gadaipur, Mehrauli were found and as per return filed by the assessee, he had acquired this property for a consideration of Rs. 18.50 lacs during the financial year 1995-96 and assessee had spent Rs. 29,29,162 on development of this property during financial years 1996-97 to 1999-2000. Further, this p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly the COMMISSIONER OF INCOME-TAX(A) deleted the addition made by the AO. 5. Aggrieved by the order passed by the CIT(A), the Revenue filed appeal before the Tribunal. The Tribunal vide impugned order, dismissed the appeal filed by the Revenue. 6. It has been contended by the learned counsel for the Revenue that the assessee is engaged in the business of real estate including construction and sale purchase of the properties and, therefore. the investment in the said property was in the nature of regular business investment. Whatever incriminating documents relating to the understatement of business income were found during the search would amply cover this property and bring it within the ambit of provisions of Chapter XIV-B and al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The definition specifies that where an assessee has claimed any expenses or addition (sic-deduction) which is found to be false, the same can only be regarded as an undisclosed income for the purpose of this chapter. 9. In CIT vs. Ravi Kant Jain [2001] 167 CTR (Del) 566 : [2001] 250 ITR 141 (Del), this Court while discussing the provisions of section 158B of the Act held that: "The special procedure of Chapter XIV-B is intended to provide a mode of assessment of undisclosed income, which has been detected as a result of search. As the statutory provisions go to show, it is not intended to be a substitute for regular assessment. Its scope and ambit is limited in that sense to materials unearthed during search. It is in addition to the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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