TMI Blog2006 (10) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... nquiry conducted as to source of amount and how it had been credited – amount can be added as unexplained investment - 266 of 2004 - - - Dated:- 23-10-2006 - ADARSH KUMAR GOEL and RAJESH BINDAL JJ. Salil Bali for the appellant. JUDGMENT 1. The assessee has preferred this appeal against the order dated July 31, 2003, in IT(SS)A No. 2/Chandi/1996, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", in respect of block period commencing 1986-87 to 1996-97, proposing the following substantial questions of law : "(i) Whether, on the facts and circumstances of the case, the learned Income-tax Appellate Tribunal was right in upholding the addition of Rs. 53,609 against the declared income of Rs. 16,000 which was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Tribunal was right in upholding the cash to the tune of Rs.13,845 as unexplained cash found during the search operations despite the fact that it was properly explained by the appellant terming the same to be savings of his wife and children ?" 2. At the time of hearing, learned counsel for the assessee made submissions only with reference to proposed questions (i) to (iii). We will, therefore, deal with the said submissions only. 3. Search was conducted at the residential premises of the assessee on November 23, 1995, under section 132(1) of the Income-tax Act, 1961 (for short, "the Act"). Certain documents were seized. Notice dated February 1, 1996, under section 158BC of the Act was given to the assessee, requiring filing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee for the period April 1, 1995, till the date of search because the date of filing of the return of the income was due after March 31, 1996, as well as, the alternate argument that even if this income was estimated for the said period it should be clubbed in the return to be filed for the assessment year 1996-97 and the normal rate of tax should have been charged instead of 60 per cent. have no force and accordingly these arguments of learned counsel for the assessee, having no force, are rejected and as a consequence of the same, the assessee having failed to explain with the documentary evidence as to why he declared the income at Rs. 16,000 for the assessment year 1996-97 up to the date of search, i.e., November 23, 1995, when M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l on this issue, we do not find this to be a substantial question of law. Re : Questions Nos. (ii) and (iii) 9. The finding of the Tribunal on these questions is as under : "7.9 We have gone through the decision (supra) and find that the facts of that case (supra) were not applicable because in that case even the dispute regarding the ownership of the gift amount was involved which is not in the instant case of the assessee. Further, in that case the interchargeability of and applicability of sections 69 and 69A was involved whereas in the instant case only the applicability of sections 68 and 69, as well as, interchargeability of both these sections is involved. We are of the opinion that since the Assessing Officer found this am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been made but have not been satisfactorily explained, the income should be taken as the income of the assessee. So, in the existing facts and circumstances, the addition could have been made but have not been satisfactorily explained, the income should be taken as the income of the assessee. So in the existing facts and circumstances, the addition could have been made under either of the section 68 or 69 of the Income-tax Act. In the light of the above discussion, it would be futile and academic to discuss the alternate argument of the learned Departmental representative for the Revenue, based on the citation (supra) that the wrong mentioning or non-mentioning of the sections in which the addition is made would not vitiate the liability of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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