TMI Blog2003 (4) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... and was confronted to the assessee but he was not able to give any explanation and, therefore, it should be accepted as evidence. we do not find any substantial question of law involved in this appeal. - - - - - Dated:- 14-4-2003 - Judge(s) : DIPAK MISRA., A. K. SHRIVASTAVA. JUDGMENT The judgment of the court was delivered by DIPAK MISRA J.-In this appeal preferred under section 260A of the Income-tax Act, 1961 (for brevity "the Act"), the Revenue has called in question the legal propriety of the order passed by the Income-tax Appellate Tribunal, Jabalpur Bench, Jabalpur (for brevity "the Tribunal"). The facts which are essential to be stated are that in respect of the business premises of the respondent-firm a search and seizur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has spent more on renovation on residential house than what was recorded in the books of account. The order of this Tribunal in the case of Agarwal Motors v. ACIT is squarely applicable to the facts of the case. We are, therefore, of the opinion that the Assessing Officer is not at all justified in making impugned addition in block assessment framed under section 158BC of the Income-tax Act. We, therefore, hereby delete the addition of Rs. 1,88,042 made by the Assessing Officer in the assessment framed under section 158BC on account of alleged unexplained investment in the construction." Assailing the aforesaid order it is submitted by Mr. Rohit Arya, learned counsel for the Revenue, that the Tribunal has misconstrued the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 materials or information as are available with the Assessing Officer, as reduced by the aggregate of the total income, or, as the case may be, as increased by the aggregate of the losses of such previous years, determined,- (a) where assessments under section 143 or section 144 or section 147 have been concluded, on the basis of such assessments; (b) where returns of income have been filed under section 139 or section 147 but assessments have not been made till the date of search or requisition, on the basis of the income disclosed in such returns; (c) where the due date for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eable to tax in the hands of the partners, whether on allocation or on account of enhancement; (c) assessment under section 143 includes determination of income under sub-section (1) or sub-section (1B) of section 143." Mr. Arya, learned counsel for the Revenue, has placed emphasis on the words "such other materials or information as are available with the Assessing Officer". It is contended by him that the said provision has to be read conjointly with section 131(1)(b) of the Act which confers power on the Assessing Officer regarding discovery or production of evidence, etc. Section 131(1)(d) of the Act deals with issuing of commission. The submission of Mr. Arya is that information can be gathered by issuing necessary direction for co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made on account of unexplained expenses in the construction of the residential bungalow at Jaysingpur, when the same was properly made by the Assessing Officer?" While dealing with said question the view was expressed as under: "The said question refers to an addition of Rs. 2,49,350 made on account of unexplained expenses in the construction of a residential bungalow by the assessee. Here also, Chapter XIV-B has no application. The Tribunal, rightly, found that the addition is made on the basis of the report of the Departmental Valuer. According to the Assessing Officer, during the search, it was found that the assessee had constructed a bungalow. It was found that the assessee had incurred expenses of Rs. 4.16 lakhs. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was effected to section 158BB in the year 2002 with effect from July 1, 1995, and the amendment would be applicable to the present case as block period covers ten years commencing 1986 to 1996. On a perusal of the unamended and amended provisions and the Central Board of Direct Taxes circular, we are of the considered view that there has been no specific effect as far as this facet is concerned. Emphasis has been given on the fact that evidence must have been found during the search and only thereafter the question of gathering any material information would arise based on the search inquiry. It is not disputed at the Bar, that during the search in the premises of the assessee nothing was found with regard to the investment in the house. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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