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TMI Blog2018 (9) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... s grossly erred in not considering the appellant's submissions made before him as such the order is against principle of natural justice, bad in law and deserves to be cancelled. 2) On the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (Appeals)-1, Ahmedabad, has grossly erred in not giving the set off of adhoc disclosure made for A.Y. 2012-13 with a rider to allow set off in case of undisclosed income/transaction/ notings found during the course of assessment proceedings. The appellant is entitled to get set off of Rs. 1,99,25,000/- against the adhoc disclosure of Rs. 2,52,06,876/-made for A.Y. 2012-13. The same kindly be directed to allow the setoff and the addition made be deleted. 3) On the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the other hand, the assessee's contention was before the lower authorities was as follows: "2.1 On 21/22.07.2011, the residential premises as well as the business premises of the appellant was subjected to search and seizure proceedings u/s 132 of the IT Act. During the course of search proceedings, the statements made of the group persons i.e. Motibhai Revabhai Prajapati (brother), Shri Kanlibhai Revabhai Prajapati (self), Bhagvanbhai Revabhai Prajapati (brother) were recorded. The group leaders (Supra) have made disclosure of Rs. 40 Crore in the statement recorded u/s 132(4) of the IT Act. During the course of search proceedings, various incriminating materials relating to the appellant as well as appellant group concerns were found a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppearing. The Ld. A.O. has asked the explanation in respect thereof. In respect to the above, the appellant has submitted that the entries regarding KR is duly incorporated in the books of account No. 2 prepared to disclose the additional income in the hands of the various partnership-firms of the Madhav Group Concerns. However, the entry in the name of BS appearing is not pertaining to the appellant. However, to buy peace of mind and avoid litigation, the appellant has owned up the entry regarding BS. 2.5 It is important to note that while arriving total disclosure of Rs. 40 Crores in the hands of the appellant as well as in the hands of the various group concerns of the Madhav Group, the appellant and the Madhav Group concern could wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed income/transaction/entry worked out during the course of the block assessment proceedings may kindly be set off against this disclosure. The appellant and his brothers could not foresee that the entry/transaction will be worked out for the A.Y. 2006-07. 2.7 Since the Adhoc disclosure of Rs. 2.52 crores was made with a rider that any undisclosed income/transaction/entry found during the course of the block assessment proceedings may kindly be set off against this disclosure, the appellant is entitled for the legitimate claim. In view of the above, your honour is requested to kindly direct the Ld. A.O. allow the set off to the disclosure against unexplained entry of Rs. 1.99 crores found during the course of the block assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of Rs. 40 crores in the block return of income. 8. During the course of the block assessment proceedings and at the time of verification of incriminating loose papers, the Ld. A.O, has noticed that on Page No, 117 of Annexure-19 (Party 40), the transactions in the name of B.S, as well as capital account drawn in the name of K.R.(Kantibhai R. Prajapati) as appearing. The Ld. A.O. has asked the explanation in respect thereof. In respect to the above, the appellant has submitted that the entries regarding KR is duly incorporated in the books of account No. 2 prepared to disclose the additional income in the hands of the various partnership-firms of the Madhav Group Concerns. However, the entry in the name of BS appearing is not pertaining ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1962-63 - Whether for purposes of unexplained income which is contained in books of account it is assessee's previous year which shall be relevant for including such an unexplained credit - Held, yes - Cash credit entry was found recorded on 1-7-1961 -Addition was made in assessment year 1961-62 but was deleted by AAC directing ITO to consider addition in assessment year 1962-63 - In assessment year in question addition was made rejecting explanation as to source of cash credit - Relevant previous year was 16-4-1960 to 15-4-1961 - Whether addition of cash credit in assessment year 1962-63 was not justified - Held, yes" 10. Respectfully following the aforesaid judgment and Since the Adhoc disclosure of Rs. 2.52 crores was made w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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