TMI Blog2001 (11) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... rved. Ultimately, the assessee filed her return for the block period on 8-12-1997 showing undisclosed income at nil . The Assessing Officer completed the assessment on 26-2-1998 working out undisclosed income under various heads at ₹ 8,46,412. 4. Ld. AR submitted that the assessee is a regular assessee with PAN 201-S/YNR-B at Yamunanagar. He drew our attention to copies of statement of income along with profit and loss account, capital account, balance sheet of the assessee as appearing at pages 44 to 77 of paperbook relating to assessment years 1987-88 to 1997-98. As per these computations, the assessee was having income from the partnership firm M/s. Anand Lime Store, M/s. Ved Parkash Ashok Kumar, M/s. Industrial Mineral, M/s. Upkar Sales Corpn, Agrl. income and also income from running of trucks. Up to assessment year 1995-96, returns were filed in respect of income from truck on the basis of regular books of account. From assessment year 1996-97, income from truck was shown in accordance with the provisions of section 44AE. There was a survey under section 133A and the assessee declared an income of ₹ 1.50 lakh, which is clear from the statement of total inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (4) but the ITAT held that the income disclosed in the belated returns cannot be terms as undisclosed income for the purpose of block assessments. Thus, according to ld AR, the income disclosed in return filed for assessment year 1996-97 cannot be regarded to be undisclosed income. 4.1 In respect of ground No. 5, ld AR submitted that a sum of ₹ 27,200 was added on the basis of cash found in locker No. 13/1 with the Indian Bank. In respect of ground No. 6, i.e. , addition of ₹ 50,000 for assessment year 1997-98 on account of FDRs found in locker No. 138 in the name of Sh. Prem Chand, ld. AR submitted that the FDR was purchased on 5-7-1996. Photocopies of entries in cash book and lodger are filed before us. Ld. AR submitted that cash book and ledger was duly produced before the Assessing Officer. He drew our attention to pages 19-20 of the paper book, which is a letter submitted before ACIT on 25-2-1998. According to ld. AR, the FDR was duly disclosed and is, therefore, outside the scope of Chapter XIV-B, in view of the definition given under section 158B(b). In respect of ground No. 7, i.e., two FDRs for ₹ 13,964 and ₹ 13,776, ld. AR submitted that these a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is not required to explain these cash credits relating to block assessment under Chapter XIV-B because these cash credits did not fall within the definition of undisclosed income given under section 158B(b). Ground No. 12 relates to the addition of ₹ 15,763 for assessment year 1992-93 on account of share of profit treating the same as out of undisclosed income. Ld. AR submitted that the assessee is a partner in the firm M/s Ved Parkash Ashok Kumar since 1987-88 and share income from the said firm is duly shown in return, copies filed before the Assessing Officer as also these are available in paper book pages 44 to 77. Ground No. 13 relates to addition of ₹ 90,000 for assessment year 1997-98 on account of income from trucks treating the same as undisclosed income. Ld. AR submitted that truck income is duly disclosed from assessment year 1987-88 onwards and it is a regular source of income. By no stretch of imagination, one can presume that this income would not have been disclosed when the assessee has paid advance tax. Ground No. 14 relates to the addition of ₹ 50,000 for assessment year 1997-98 on account of income from other sources and interest estim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trongly relied on the order of the Assessing Officer. She submitted that the locker was under the benami name of Sh. Prem Chand and the assessee kept the FDRs. The assessee has not furnished any explanation regarding source of FDRs before the Assessing Officer. She submitted that the plea of ld AR that these FDRs are out of agrl. income is merely an afterthought. These FDRs cannot be out of agrl. income because agrl. income earned has been duly accounted for while preparing balance sheet of the assessee for each of the assessment year and these FDRs have not been shown in balance sheet which were filed in respect of regular assessment before the Assessing Officer. She stressed that the additions have been rightly made and these should be upheld. 5. We have heard the parties, have considered their submissions and have perused the orders as well as the case law cited at the Bar. Addition of ₹ 27,200 for assessment year 1997-98 on account of cash found has been rightly made by the Assessing Officer, as the assessee could not adduce any evidence in respect of the source of cash in hand either before the Assessing Officer or even before us. The onus to prove that said cash was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght within the definition of undisclosed income. The method how undisclosed income is to be computed has been given under section 158BB. Section 15BB lays down that undisclosed income of the block year shall be aggregate of total income of each of the previous year falling within the block year computed, in accordance with the provisions of Chapter IV, on the basis of evidence found as a result of search or requisition of books of account or documents and such other material or information as are available with the Assessing Officer. The aggregate so arrived at shall be reduced by the amounts, which are given under sub-clauses (a) to (f) of section 158BB. Section 158BB gives the method as to how undisclosed income within the block year has to be computed. The computation has to be on the basis of books of account or documents or material found as a result of search. This is a settled law that the computation provisions cannot supersede the charging provisions. If some income cannot become undisclosed income within the definition under section 158B(b), it cannot be brought to tax by way of computation section under section 158BB. The computation provisions are to be applied subseque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come thus stands shown in assets on a particular date. Thus, these FDRs for ₹ 13,964 and ₹ 13,776 are the undisclosed income within the definition under section 158B(b). He confirm the impugned additions. 9. In respect of ground No. 8, we find that KVPs amounting to ₹ 2.60 lakhs cannot be regarded to be the undisclosed income under section 158B(b) because these are duly disclosed in balance sheet as on 31-3-1995, re. page 67 of the paper book. Thus, the impugned addition is deleted. 10. Additions of ₹ 11,240 for assessment year 1995-96 and ₹ 22,275 for assessment year 1997-98 on account of accrual of interest on KVPs as raised in ground No. 9 cannot be upheld. The assets on which the income stands accrued is duly disclosed in the books of account, as is clear from the balance sheet appearing at page 67 of the paper book. 11. Addition of ₹ 25,000 for assessment year 1994-95 on account of gifts treating the same as undisclosed income also cannot be sustained because the said gift is duly disclosed and shown in its books of a/c and capital account. Entry of gift is duly disclosed; therefore, by no stretch of imagination, the addition can be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
