TMI Blog2007 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... aw: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified and correct in law in confirming the order of the Commissioner of Income-tax (Appeals) in the interpretation of the meaning, scope and ambit of 'undisclosed income' defined in section 158B(b) of the Act, 1961, to hold that the deposits of Rs. 65.28 lakhs and 39.70 lakhs cannot be subjected to assessment under section 158BC of the Income-tax Act, 1961 ?" 2 We have heard Mr. U. Bhuyan, learned standing counsel for the Revenue, and also Dr. A. K. Saraf, learned senior counsel for the respondent. 3 There was search and seizure in the business as well as residential premises of the assessee on July 20, 2000. Proceedings under section 158BC of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Bhuyan made further submission that in a case where previous year has not ended or the date of filing of the return under section 139(1) of the Act has not expired, any income determined relying upon the entries in the books of account and other documents maintained in the normal course of business on or before the date of search has to be excluded. No such document or any other evidence could be produced by the respondent-assessee to meet the requirement of clause (d) of section 158BB(1) of the Act and, therefore, the Assessing Officer was correct including the unexplained deposits as part of undisclosed income. 5 Dr. A. K. Saraf, learned senior counsel argued at length to counter the submission of Shri Bhuyan. Dr. Saraf challenged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is mentioned that the regular books of account of the block period were produced and the explanation regarding various bank accounts were examined in details by the Assessing Officer. The Commissioner of Income-tax (Appeals) also took note of the observation of the Assessing Officer that the bank accounts were found recorded in the regular books of account and duly explained by the authorized representative. On this context, the Commissioner of Income-tax (Appeals) held that the same will not be covered by the definition of undisclosed income. The Commissioner of Income-tax (Appeals) on examination of the documents observed as follows: " ..Thus, from the order sheet it is evident that the appellant had regular books of account which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on record came to the conclusion that the Assessing Officer erred in making the addition of Rs. 65,28,354 and Rs. 39,70,728. The reason given by the learned Com missioner of Income-tax (Appeals) was relied upon by the learned Tribunal in coming to the above conclusion. 8 We have considered the respective submissions made by learned counsel for the parties in details. It would appear from the pleadings on record that the aforesaid two amounts were received by the assessee from a Government agency, i.e., DRDA by cheques and the same were deposited in the Canara Bank account of the assessee and duly reflected in the regular books of account. The Assessing Officer in the order sheet dated March 26, 2001, recorded that the explanation rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in such bank accounts cannot be the subject-matter of block assessment proceedings. There is also no material on record to show that the assessee intended to hide any part of his income for the assessment years under consideration. (Ref. Ramesh Kumar Agarwal v. ACIT IT(S S) No. 21/Gau of 1997). 9 We have considered the decisions rendered in CIT v. Don. Bosco Card Centre [2007] 289 ITR 329 (Ker) ; Dr. Brijesh Lahoti v. CIT reported in [2006] 282 ITR 349 .(MP) and Smt. Harbans Kaur Bhatia v. CIT reported in [2005] 274 ITR 298 (MP). The decisions rendered in those judgments are on different facts and circumstances. Therefore, the decisions therein cannot determine the course of decision making in the instant case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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