TMI Blog2003 (9) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... be charged on that part of the income. - We agree with Mr. Jhanwar that concealed income should be computed in cases of search in accordance with the provisions of section 158BB and after computing the total concealed income; it should be taxed as per the rates specified for the concealed income, in each year. - - - - - Dated:- 9-9-2003 - Judge(s) : Y. R. MEENA., SHASHI KANT SHARMA. JUDGMENT The appeal was admitted in terms of the following questions: "(i) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in sustaining additions made in block assessment proceedings under section 158BD of the Act, irrespective of the fact that the entries were made in the regular books of accounts? (ii) Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on higher pedestal, while arriving at the conclusion? (ix) Whether tax can be levied on the basis of estimation of income when the estimation is too arbitrary and irrational based on surmises and conjectures? (x) Whether, on the facts and in the circumstances of the case, the Tribunal could ignore the documentary evidence, available on the record and place reliance on the purported statement recorded during the course of search, while sustaining additions? (xi) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in placing reliance on statement which are not free from doubt and ambiguity and without being corroborated with an evidence, while coming to the conclusion? (xii) Whether the finding arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition of Rs. 2,28,080 on account of unexplained capital of Smt. Gayatri Devi in the year 1995-96. The second addition of Rs. 1,03,965 sustained was on account of unexplained accretion in capital of Smt. Gayatri Devi and alleged bogus cash creditors. The third addition was on account of unexplained capital of Shri Chain Sukh Rathi to the tune of Rs. 1,78,882. The fourth addition was Rs. 5,94,000 on account of low household expenses shown in the block period. The last addition was Rs. 30,000 on account of unexplained gift from the father. Learned counsel for the assessee submits that addition on this account is only the basis of material seized during the search and therefore, there is no justification for addition on account of the capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rs. Rs. ----------------------------------------------------------------- 1986-87 1987-88 30,000 18,000 48,000 1987-88 1988-89 30,000 18,000 48,000 1988-89 1989-90 30,000 18,000 48,000 1989-90 1990-91 30,000 18,000 48,000 1990-91 1991-92 36,000 24,000 60,000 1991-92 1992-93 36,000 24,000 60,000 1992-93 1993-94 42,000 30,000 72,000 1993-94 1994-95 42,000 30,000 72,000 1994-95 1995-96 48,000 - 48,000 1995-96 1996-97 48,000 - 48,000 1996-97 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal. The Tribunal has rightly added this amount of Rs. 2,28,080 in the income of the assessee. The third item relates to the addition of Rs. 1,03,965. This amount pertains to the assessment years 1996-97 and 1997-98. This is an accretion of the capital introduced in the name of his wife, i.e., Rs. 2,28,080. As the amount of Rs. 2,28,080 has been treated as the amount of the assessee, this addition is consequential and the consequential addition will have to be sustained in the hands of the assessee. The next addition is on account of unexplained capital in the name of Chain Sukh Rathi, i.e., the assessee to the tune of Rs. 1,78,882. Chain Sukh Rathi has introduced this capital in the assessment year 1995-96 and no source has been estab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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