TMI Blog2015 (12) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... tions prescribed u/s 132(1) was complied with. Under these set of facts, the view that there is no merit in the contentions of the assessee on this issue and hence, the same is liable to be dismissed. Validity of accepting the additional income disclosed by the assessee in the return of income filed u/s 153A - Held that:- In the instant case, the assessee has voluntarily offered certain credits found in his bank account as additional income, since he felt that the source of those credits could not be explained by him. Hence, the basis of offer of additional income is the bank account of the assessee. There should not be any dispute that the availability of undisclosed income, if any, will be within the personal knowledge of the assessee, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs passed by the ld.CIT(A)-51, Mumbai and they relate to the assessment years 2006-07 and 2007-08. Since the issues urged in these appeals are identical in nature, they were heard together and are being disposed of by this common order, for the sake of convenience. 2. The grounds urged by the assessee in both the years give rise to the following two issues: a) Validity of search conduced in the hands of the assessee under section 132 of the Act; and b) Validity of accepting the additional income disclosed by the assessee in the return of income filed u/s 153A of the Act. 3. The facts relating to the issues are stated in brief. A search and seizure action under section 132 of the Act was carried out in the case of Transworld Furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of search action initiated in the hands of the assessee. The main contention of the assessee is that the search action has not resulted in unearthing of any incriminating material or undisclosed income, which would show that the Revenue has initiated search proceedings under section 132 of the Act without complying with the conditions prescribed u/s 132 of the Act. The ld. AR has placed reliance on the decision of Hon ble Karnataka High Court in the case of C. Ramaiah Reddy V/s ACIT (2012) 20 taxmann.com 781 (Kar) in order to submit that the Tribunal is empowered to decide the issue relating to validity of search. 7. However, in my view, the validity of search action should be upheld if one of the three conditions prescribed under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot abate. The Special bench of the Tribunal in the case of All Cargo Global logistics Ltd (137 ITD 287) and also the Hon ble Jurisdictional Bombay High Court in the case of Murli Agro Products Ltd have held that the additions, if any could be made in the case of concluded proceedings only on the basis of incriminating materials. We have earlier noticed that the assessee has offered additional income voluntarily in both the years under consideration in the returns of income filed u/s 153A of the Act. Based on the above said legal propositions, the assessee is now contending that the additional income so offered was not relatable to any incriminating material and hence, in the absence of any incriminating material, the assessing officer shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a particular year on the basis of results of search operations. In the instant case, the assessee has voluntarily offered certain credits found in his bank account as additional income, since he felt that the source of those credits could not be explained by him. Hence, the basis of offer of additional income is the bank account of the assessee. There should not be any dispute that the availability of undisclosed income, if any, will be within the personal knowledge of the assessee, even if no incriminating material was found during the course of search. In my view, the provisions of section 153A nowhere states that the assessee is precluded from offering such kind of undisclosed income in the return of income from out of his bank account ..... X X X X Extracts X X X X X X X X Extracts X X X X
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