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TMI Blog2016 (6) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1961 ['the Act' for short]. 2. Briefly stated the facts are that, search operations were carried out concerning the petitioner between 15.09.1993 and 20.10.1993. Besides other valuable articles, things and documents, a cash of Rs. 10,000/- was sized from the premises of the petitioner and Rs. 1,50,000/- was recovered from the premises of the neighbour of the petitioner, one Vikram Pandya. On 10.01.1994, the petitioner wrote to the Assistant Commissioner of Income Tax, Mehsana Circle, and conveyed that, a total of Rs. 1,60,000/- seized during search operation is covered under disclosure statement made by the petitioner in terms of Explanation 5 to Section 271(1)(c) of the Act. He requested the Assistant Commissioner to adjust th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been acquired. Assessee vide his reply dated 1.10.1994 has not given any explanation regrading source of acquisition of this amount. Assessee has stated that the cash of Rs. 10,000/- seized may be adjusted against the tax liability in his case and in the case of A.O.Ps. in which he is interested. In view of the above facts, it is clear that assessee is not in a position to explain source of cash of Rs. 10,000/- seized during the source of search. Therefore, the sum of Rs. 10,000/- is treated as unexplained and added to the total income of the assessee for A.Y. 1994-95. 13. Cash of Rs. 1,50,000/- was seized from the residence of Shri Vikramrai P. Pandya on 15.9.1993. Shri Vikramrai P. Pandya stated that the cash belongs to Shri Maheshbh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iting a tax on admitted liability came-up for consideration before the Settlement Commission. The department contended that the assessee was in shortfall of tax by Rs. 17,174/- with interest of Rs. 30,912/-, total shortfall of the assessee would come to Rs. 48,086/-. This was canvassed by the Revenue before the Settlement Commission, upon which, the assessee deposited such amount with the department on 18.08.2008. Since, however, such deposit was after the date of 31.07.2007, the Settlement Commission, by the impugned order, decided to terminate the settlement proceedings. It was held that: "3. In the case of Shri Mahesh S. Patel, the Commissioner of Income Tax, Central I, Ahmedabad has reported that the applicant had paid tax of Rs. 16,44 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/-, no order under Section 132(5) of the Act is needed to be passed since he concedes to such amount vesting absolutely in the department. Even in the order under Section 132(5) of the Act passed by the Assistant Commissioner on 17.01.1994, he took cognizance against all these disclosures of the petitioner. He also noted that in the letter dated 10.01.1994, the assessee had requested that such cash be adjusted against the tax liability which may arise in his case. It was, in this background, he recorded that in view of the explanation of the assessee, it is clear that he is not in a position to give any explanation regarding the source of acquisition of Rs. 1,50,000/- seized from the residence of Shri Vikram Pandya which is claimed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, in the year 2012, brought these facts, ofcourse not in such elaborate terms, to the notice of the Settlement Commission and requested that the question of shortfall of Rs. 48,086/- be examined in light of such facts. 9. In our opinion, the department was not correct in raising shortfall of Rs. 48,086/- in case of the assessee. The assessee, way back in the year 1994, had surrendered the entire amount of Rs. 1,60,000/- unconditionally and had also authorized the department to adjust the same against any of his tax dues. The contention of the counsel for the Revenue, that the order passed by the Assistant Commissioner under Section 132(5) of the Act does not partake character of assessment though the assessee was willing to surr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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