2007 (5) TMI 637 - HC - Income Tax

Summary

Issues involved: Appeal challenging order u/s 260A of Income-tax Act, 1961 for block period 1986-87 to 15-9-1995.

Summary:
1. The appellant challenged the Income-tax Appellate Tribunal's order regarding undisclosed income and interest amount additions during block assessment.
2. The Tribunal deleted the additions made by the Assessing Officer, prompting the revenue to file the present appeal.
3. The revenue contended that the assessee failed to provide complete details and confirmations, leading to defective information.
4. The Tribunal held that the undisclosed income additions were duly disclosed in the books of account, thus not qualifying as undisclosed income.
5. The definition of "undisclosed income" u/s 158B of the Act was discussed, emphasizing the requirement of evidence found as a result of search to establish undisclosed income.
6. No material was found to prove that the credits were not genuine or undisclosed, leading to the conclusion that no basis existed for the undisclosed income addition.
7. The Tribunal also deleted the interest amount addition, as it was made without basis or reference to material detected during the search.
8. The Tribunal's decision was upheld, dismissing the appeal as it did not involve any substantial question of law under section 260A of the Act.