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TMI Blog2006 (1) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... h. The learned DR has placed heavy reliance on the fact that during the course of search proceedings books of account were found wherein the transactions of the assessee with Shri V.P. Jain and various concerns of Shri V.P. Jain were found. During the course of search proceedings the books of account maintained by an assessee in the regular course are supposed to be found. Had such books of account been not found, that could have been a circumstance against the assessee. The argument that as the department decided to verify the contents of the books of account and enquired into genuineness thereof, the subsequent enquiry and material gathered should be treated as a result of search is far-fetched. As far as the books of account were concerned, the same support the case of the assessee and do not contain any incriminating material. Statement of Shri Ved Prakash Jain cannot be considered to be part of the search or even the result of the search. Such a statement could have been recorded in the ordinary course of enquiry in the case of the assessee. It is important to bear in mind that every enquiry conducted by the department after the date of the search cannot be presumed to be an e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n deeming provisions where an assumption of income is raised in the absence of satisfactory explanation from the assessee. As these are deeming provisions the condition precedent for invoking such provisions are required to be strictly construed. The facts and circumstances giving rise to the presumption have to be established with reasonable certainty. The Assessing Officer cannot first make certain conjectures and surmises and thereafter apply the deeming provisions based on such conjectures and surmises. In the absence of adequate material as to the nature and ownership of the transaction, undisclosed income cannot be assessed in the hands of the assessee merely by arithmetically totalling various figures jotted down on the loose documents. In other words for the purpose of resorting to deeming provisions, dumb documents or documents with no certainty have no evidentiary value. After consideration of the matter we find ourselves substantially in agreement with these contentions. Accordingly, we hold that the addition has been made by the Assessing Officer on grossly inadequate material. The same is, therefore, directed to be deleted. Block Assessment in search case - The entire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessees on 11-2-2005 against the orders of the learned CIT (Appeals)-I, New Delhi dated from 21-10-2004 to 1-11-2004 in the cases of the assessees in relation to orders under section 158BC for the block period 1-4-1995 to 11-9-2001. Appeal in IT (SS) A. No. 312(Del.)/2005 has been filed by M/s. Balaji Wires Pvt. Ltd. on 23-6-2005 against the order of the learned CIT (Appeals)-I, New Delhi dated 17-5-2005 in relation to the order under section 158BC for the block period 1-4-1995 to 11-9-2001. 3. The facts of the case leading to these appeals briefly are that search and seizure operations under section 132(1) of the Act were conducted at various residential and business premises of the above named group of assessees called Bansal group on 11-9-2001. Thereafter notices under section 158BC were issued and in response M/s. Bansal Wire Industries Ltd. declared an undisclosed income of Rs. 10 lakhs and Smt. Anita Gupta declared an undisclosed income of Rs. 9 lakhs in the block returns filed by them. The Assessing Officer has in the block assessment order made huge additions in every case and a substantial part thereof has been confirmed by the learned CIT(Appeals). One additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Ved Prakash Jain retracted from the statement recorded by DDIT (Inv.) on 25-9-2001. Thereafter the statement of Shri V.P. Jain was once again recorded on 14th December, 2001when Shri Jain was cross examined by Shri. Arun Kumar Gupta in the office of DDIT (Inv.) and thereafter re-examined by the DDIT. In the cross examination Shri Ved Prakash Jain stated that where the goods were directly sent to his customers the material was not physically received in the shop of Shri Ved Prakash Jain and Shri Jain only received the bills. He had earlier stated that no goods were physically sold and purchases in relation to the sales and purchases made by the customers through Shri Jain and the goods were directly delivered to the addresses of such customers. In relation to commission of 0.5 per cent to 0.6 per cent Shri Jain clarified that no commission was received from Bansal group and in the earlier statement he had used the term commission to denote his margin of profit on goods being re-sold to third parties. Shri Jain clarified that no cash was received from Bansal group but the goods/material received from various concerns of Bansal group was sold by him in cash and such cash was depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s group concerns. On that basis, the learned Assessing Officer made an addition of Rs. 30,62,459/- in the following manner: Fin. Year Entry amount Commission 1995-96 3,33,45,024 2,00,070 1996-97 4,55,45,136 2,73,270 1997-98 9,35,48,272 5,61,289 1998-99 8,47,53,039 5,08,518 1999-2000 10,76,06,141 6,45,636 2000-01 8,71,93,303 5,23,160 2001-02 5,84,18,396 3,50,516 30,62,459 The above working relates to Bansal Strips Pvt. Ltd. The learned Assessing Officer made similar additions in other cases. 5. During the course of appeals before the learned CIT (Appeals) the assessees objected to the addition made on account of alleged unexplained expenditure in the shape of commission payments to Shri V.P. Jain. The assessee argued that during the course of search proceedings no evidence was found of any such bogus payments. The assessee pointed out that all the three statements of Shri V.P. Jain were at variance. Therefore, no conclusion could be drawn from the statements without there being corroborative evidence. The assessees had made genuine sales to the concerns of Shri Ved Prakash Jain in the ordinary course of business, as was evident from the sales-tax forms obtained from the concerns of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition of Rs. 30,62,459/- in the case of Bansal Strips Pvt. Ltd. and similar additions in other cases. 6. During the course of hearing before us the learned counsel for the assessee argued that the learned CIT (Appeals) was not justified in relying upon the original statement of Shri V.P. Jain and ignoring his subsequent statements since the original statement was taken behind the back of the assessee and the subsequent statement was given during the course of cross-examination. During the course of search not an iota of material was found to support the theory of so-called unexplained expenditure incurred by various concerns of Bansal group. In the absence of any material found during the course of search, the whole issue fell outside the scope of block assessment proceedings under the provisions of section 158BC. In support of this contention the learned counsel relied upon the decision of ITAT in the case of Sunder Agencies v. Dy. CIT [1997] 63 ITD 245 (Mum.). He also relied upon the judgments in the case of CIT v. Dr. M.K.E. Memon [2001] 248 ITR 310 (Bom.), CIT v. Shambhulal C. Bachkaniwala [2000] 245 ITR 488 (Guj.); CIT v. Vikram A. Doshi [2002] 256 ITR 129 (Bom.). The le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. CIT [2005] 91 TTJ (Delhi) 261 to the effect that post search enquiries cannot be made the basis of addition. Same view had been taken by Hon'ble Madhya Pradesh High Court in the case of CIT v. Khushlal Chand Nirmal Kumar [2003] 263 ITR 77. In any case the statement was retracted by Shri V.P. Jain in cross examination by Shri Arun Kumar Gupta. The earlier statement was recorded behind the back of the assessee and, therefore, could not be utilized as evidence against the assessee. In support of those contentions, the learned counsel relied upon the judgments in P.S. Abdul Majeed v. Agrl. IT STO [1994] 209 ITR 821 (Ker.), CIT v. Eastern Commercial Enterprises [1994] 210 ITR 103 (Cal.), Kishinchand Chellaram v. CIT [1980] 125 ITR 713 (SC), Hirji Nagji Co. v. CIT [1976] 105 ITR 286 (Ori.), J.K. Synthetics Ltd. v. ITO [1986] 19 ITD 102 (Delhi), 45 ITR 209 (sic) and CIT v. Biju Patnaik [1991] 190 ITR 396 (Ori.). 7. Without prejudice, the learned counsel argued that in any case no addition could be made in the assessments of the assessee group because according to the Assessing Officer the amounts allegedly paid to Shri V.P. Jain were in the nature of unexplained expenditure. An add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew, it could be found that in subsequent statement a futile effort was made to clarify the statement originally given. Secondly, the original statement given by Mr. V.P. Jain under section 132(4) had enormous evidentiary value. The learned DR referred to question and answer 61 in the statement recorded on 2-11-2001. In that statement Shri Arun Gupta merely stated in respect of the loose papers, I do not know . Thus, no attempt has been made in the statement of Shri Arun Gupta to furnish plausible explanation. The learned DR referred to paper book pages 211-212 and pointed out that large amounts were recorded by way of receipt or payment of cash. There was no specific explanation in respect of such loose documents. These loose documents enumerating cash transactions were evidence corroborating the original statement of Shri V.P. Jain. 10. We have considered the rival submissions. From plethora of Tribunal decisions and High Courts judgments it is settled legal position now that while making an order under section 158BC, the Assessing Officer does not have the same jurisdiction that he has while assessing the income of an assessee under the general provisions of the Act. An order un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of enquiry in the case of the assessee. It is important to bear in mind that every enquiry conducted by the department after the date of the search cannot be presumed to be an enquiry as a result of the search unless and until that enquiry can be linked to some specific material or evidence detected during the course of the search. We are, therefore, of the considered opinion that the additions based on the statement of Shri V.P. Jain cannot be treated to be a consequence of the search carried out at the premises of the assessee before us. We, therefore, hold that these additions do not fall within the scope of order under section 158BC of the Act and are, therefore, liable to be excluded for that reason alone. 11. Apart from the fact that the addition under section 69C made by the Assessing Officer on account of alleged payments to Shri V.P. Jain cannot be subject-matter of block assessment orders in the cases of the assessee before us, we find that even otherwise the addition has been made on inadequate material. In this case the only basis on which the additions have been made is the first statement of Shri V.P. Jain. The learned counsel for the assessee has rightly pointed out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned CIT (Appeals) on the ground of excess stock being found during the course of the search. The details of such additions are as follows:- Name of assessee Nature of Addition made Addition by the A.O. Sustained by the CIT(A) No. Appeal Nos. Ground Nos. Bansal Strips Pvt. Ltd. Excess stock 987696/- 9,87,696/- 69/D/05 2-3 Balaji Wires Pvt. Ltd. Excess stock 25,51,497 Confirmed Subject to change in average weight. 312/D/05 1-3 S.S. Pranav Steels Pvt. Ltd. Excess stock 1,56,150 1,53,027 70/D/05 1-2 Bansal Wires Industries Ltd. Stock shortage 80,280 80,270 76/D/05 1-2 Total for the group 37,75,613 Facts of the case leading to this dispute briefly are that the concerns named above were engaged in the manufacturing of mild steel galvanized iron wires. During the course of search proceedings under section 132 at the premises of the aforesaid business concerns, an attempt was made to inventorise stock in hand as physically found. The stock was lying at various premises and godowns of the assessee in thousands of bundles. The officers conducting the search did not carry out the exercise of actual weighment of goods. The weight in the stock inventory was taken on estimate basis. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the authenticity of the inventory. The Assessing Officer held that the explanation given by the assessee was only an after thought that was not well supported. The Assessing Officer selected bill No. 12392 of Balaji Wires Pvt. Ltd. and pointed out that 37 bundles of 2846 kgs. were transacted on31-8-2001. In other words average weight per bundle was 76.91 kgs. As against the same during the course of the search bundles comprising average weight of 68.08 kgs. to 100.33 kgs. were found. There was no force in the contention of the assessee that average weight of bundle was 45 kgs. Thus, the learned Assessing Officer supported his finding of excess stock being found during the course of the search. Accordingly he made additions as above enumerated. 14. During the course of hearing before the learned CIT(A) the assessee argued that method of stock taking adopted by the search party was eye estimation counting of bundle in rows and then multiplying the same with the average weight of a bundle in that scissor of bundles. On that basis the search party arrived at an estimated number of 7866 bundles and total weight was worked out at the average weight of 65 kgs. per bundle. Even the corre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd large sustained the addition made by the Assessing Officer with some relief granted to the assessee. Still aggrieved, the assessees are in appeal before us. 15. During the course of hearing before us the learned counsel for the assessee argued that the Bansal group of assessees were engaged in the business of manufacturing mild steel galvanized wire, stainless steel wire and black wires in various gauges and sizes. For a proper weighment of such stock it was necessary to employ proper mechanical device. The search party did not use any mechanical device and they also did not utilize the services of experts. The method of stock taking was estimation of number of bundles by eye glance counting. The same was bound to be erroneous. Similarly the weight of stock was not arrived at by physical weighment of the entire stock but the figure of average weight of a bundle was worked out by sampling method. As to the raw-material used by the assessee, that is wire rods, the same were heavy and could not be easily handled manually without the help of a crane. Raw material and finished goods of the assessee were in bundles/coils of different thickness and weight. The manufacturing process in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. Dy. CIT [2002] 82 ITD 120 wherein relying upon the judgment of Hon'ble Orissa High Court in the case of Haribhagat Agarwalla v. State of Orissa [1982] 51 STC 355 it was held, that no addition could be made on the basis of difference of stock arrived at by sampling method. It was held in that case that assessing authorities were not justified p in estimating the value of stock without physically weighing them, particularly when the assesses maintained regular books of account which were checked by the central excise authorities from time to time. 16. The learned counsel pointed out that in the case of Bansal Strips Pvt. Ltd. physical stock taken included stock of scrap to the tune of 700 kgs. In that case also the average weight per bundle/coil taken in the inventory was on a very high side. The average weight was taken at 79.05 kgs.; whereas in respect of drawing grade wire the weight of the bundle was around 50 kgs. only. While doing so the authorities completely ignored the sales invoices. On the contrary they picked up only favourable instances from the point of view of revenue. In the case of Balaji Wires Pvt. Ltd. stocks of raw-material, semi-finished and finished go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material-in-process. The stock of raw-material in the furnaces as well on a number of machines was not inventoried. 18. The learned counsel argued that the Assessing Officer adopted as a thumb rule that excess represented unaccounted purchases and shortage represented sales outside books of account. During the course of search proceedings the entire premises of the assessee were scanned and all books of account and documents were taken possession of. Apart from relying on the faulty inventory of stock prepared the Assessing Officer has not been able to refer to an iota of material to corroborate or lend support to such findings. For example not a single bill or paper indicating any purchase or sale of material outside regular books of account during the course of entire search operation. No other document or loose paper/document supporting business out of books of account was found. That could not be the case if the assessee had indulged in sale/purchase of material outside books on such enormous scale. 19. The learned counsel argued that it was settled legal position that for assessment of undisclosed income in block assessment proceedings under section 158BC, there should be coge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l/evidence was found in support of excess stock physically found during the course of search proceedings. In the case of Smt. Anita Gupta unaccounted investments were found. These unexplained investments gave weight to the findings of the Assessing Officer that the assessee had been earning undisclosed income from its business of manufacturing iron steel wires. The learned DR argued that the version of the assessee in relation to the provisions of Chapter XIV-B was not correct. The assessees' counsel had conveniently overlooked the amendment brought to the provisions of the chapter with retrospective effect from 1-7-1995. 22. The learned counsel for the assessee in his rejoinder argued that management of the assessees of this group was never a party to the physical inventory prepared by the search party. The search officers directed some of the staff of the assessee to join them in the slipshod exercise and later on directed them to sign the inventories thus prepared. Those employees unaware of the provisions of law and implications of the exercise signed the inventories because they were directed to do so. It was not correct that the procedure adopted by the search party in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the instant case, the assessee has maintained quantitative details of material thus, handled. The learned CIT (Appeals) has commented upon the stock details not being kept by the assessee quality-wise as well. Even if we ignore the practical difficulties in maintenance of such details in the business of iron and steel hardware, the fact remains that the assessee has kept quantitative details. During the course of search proceedings the search authorities have attempted to verify the stock details kept by the assessee by comparing the stock as per books with inventory of physical stock taking during the course of search. The entire exercise in the cases of about hall a dozen business concerns was commenced and completed within a few hours. It does not require much imagination to arrive at the enormous logistics required for undertaking the task of a reliable estimation of the stock of the kind of goods the assessee dealt in. The task involved was by any standards a tedious, painstaking task requiring certain amount of patience and perseverance. It appears to us that the search party had none of it. With a view to remove botheration a much simplified procedure was adopted. For ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e additions of Rs. 58,982/- made by the Assessing Officer in the case of Shri Arun Kumar Gupta (HUF) and of Rs. 48,861/- in the case of Shri Arun Kumar Gupta (Indl.) on account of the alleged commission received by them while dealing with the allegation of commission in the cases of various concerns of the group as a whole. Another issue in the case of Shri Arun Kumar Gupta in individual capacity relates to an addition of Rs. 53,69,260/- made on account of loose papers. This aggregate addition has been made on the basis of certain loose papers found during the course of the search. These loose papers were seized from the residence of Shri Arun Kumar Gupta and were marked as annexure A1. Page 6 of the annexure mentioned the word Bansalji on the top. Certain figures were mentioned on this document totalling at 1,79,550 from which 4,000 is subtracted and balance is struck at 1,75,550. The assessee submitted to the Assessing Officer that this paper was not in his handwriting and it was a rough slip and that he was not able to recollect the entry. The assessee further stated that the paper did not belong to him. The learned Assessing Officer found that the submissions of the assessee we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta's unexplained income and added back the same in the block assessment. 26. Page 8 is a small slip titled as Arun June . The paper recorded certain transactions aggregating to 1300=00. The Assessing Officer held the decoded total to be Rs. 1,30,000/-. The assessee submitted that the paper was not in his handwriting and he was not able to recollect the nature of figures written on the paper. He stated that the slip did not belong to him. The learned Assessing Officer held that the assessee was intentionally avoiding to explain the paper. He, therefore, assessed the sum of Rs. 1,30,000/- as unexplained income of the assessee. Page 9 is again a small slip titled as Arun Gupta written on top of the page. On this page certain figures totalling to Rs. 15,90,000/- have been written as having been received on various dates. As per this paper the assessee was having debit balance of Rs. 7,90,000/- for the month of June, 2001. This debit balance along with interest of Rs. 4 lakhs and another transaction of Rs. one lakh gave the sum total of Rs. 12,90,000/-. According to the learned Assessing Officer the assessee made payments in June, 2001 totalling to Rs. 15,90,000/- and thus, there wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the pages were systematically written and totalled. Some pages were in the same format as the books of account, for example Rokara Haste and then the name of the party along with amount. Against some amounts the words 'debit and credit' had also been mentioned. The assessee had simply tried to evade by saying that the same were not in his handwriting. As the loose papers were found at the residence of the assessee, the learned CIT (Appeals) held that the onus was on the assessee to explain the entries. The Assessing Officer had even decoded the entry at page 7 60=60 to be Rs. 6,060/-. The Assessing Officer had also found that the address of the person who got made the demand draft viz., Snehi Gupta and the residential address of the assessee was the same 69-E, Kamla Nagar, Delhi. The learned CIT (Appeals), therefore, held that these were not the dumb documents. He further held that proviso to section 158B(b) enabled the Assessing Officer to assess income based on any entry in the books of account or other documents or transaction. The burden that any undisclosed income found during the course of the search had already been disclosed in any return of income was upon the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving any connection with the assessee. That was an incontrovertible fact. On these facts the papers could not be said to have been found in the possession or control of the assessee. Therefore, the requirement for invoking the provisions of section 132(4) was not satisfied. Furthermore, most of these papers were undated and did not bear the name of the assessee. No circumstantial evidence in the form of any unaccounted cash, jewellery or investments outside the books of account was found during the course of search. 29. The learned counsel argued that for the purpose of block assessment an addition had to be related to cogent and positive material found during the search proceedings that could prove conclusively that the assessee had either earned an income or made an investment which had not been recorded in the regular books of account maintained by the assessee. The additions could not be sustained merely on the basis of rough noting made on some loose papers unless the Assessing Officer brought on record some independent and corroborative material to prove that the noting revealed undisclosed income or investment or expenditure of the assessee. The learned counsel referred to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 976 and N.K. Malhan v. Dy. CIT [2005] 91 TTJ (Delhi) 938. The learned counsel enumerated many more decisions to support his contention that no addition can be made on the basis of a rough document in the absence of any corroborative material. 32. Without prejudice, the learned counsel argued that the addition on the basis of these loose papers could not be aggregate of all the notings at Rs. 53,69,260/-. From many notings it was not clear whether the figure represented receipt or payment. Many of these papers were undated and the year of transaction was not mentioned at all. In the case of N.K. Malhan v. Dy. CIT [2005] 91 TTJ (Delhi) 938, ITAT Delhi had held that if a document did not state any date or the year, it could not be held that the document pertains to the block period. Some of the notings could be receipt of borrowed amounts and repayments. The same could not be treated as undisclosed income. 33. As to the demand draft to Manipal the learned counsel argued that the same was got made by one Snehi Gupta. The said Snehi Gupta was not related to the assessee in any manner. The Assessing Officer had also failed to establish any link between Snehi Gupta and the assessee. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned DR argued that these loose papers were found from the car belonging to the assessee and, therefore, prima facie those papers were in control and possession of the assessee. The assessee had brought no material on record to indicate that these papers did not belong to the assessee. In these circumstances the provisions of section 132(4A) applied and the contents of documents were required to be considered to be true. The learned DR argued that it was not as if these loose papers did not indicate any connection with the assessee whatsoever. Loose paper 9 clearly recorded name Arun Gupta June 2001 on the top of the document. It was thus apparent that these documents comprised of transactions of Shri Arun Gupta during the month of June, 2001. Similarly the word Arunji was mentioned on seized document No. 8 and the word Bansalji was on seized document No. 6. There was thus internal evidence from the documents that the same pertained to the transactions of the assessee. In any case presumption under section 132(4A) applied and the assessee was answerable. In support of these contentions the learned DR relied upon the judgments in 181 ITR 333 (Ker.) (sic). The learned DR argued that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d papers are dumb documents having no evidentiary value. No addition can be made simply on the basis of notings on loose papers in the absence of corroborative materials. No circumstantial evidence in the form of any unaccounted cash, jewellery or investment outside the books was found in the course of search. (ii) The assessee, from the very inception denied having any nexus with the seized papers. The said papers were found from the motor car of the assessee which was used by children of the appellant, staff, guests, customers, suppliers and other parties. As such, they cannot be said to have been found in the possession or control of the assessee. Accordingly, the assessee is not bound by presumption under section 132(4A) in respect of these papers. (iii) The impugned loose papers do not constitute books of account. Uncorroborated loose paper found in the search cannot be taken as a sole basis for determination of undisclosed income. (iv) Even otherwise, since the said papers are unsigned the entries therein are not sufficient to fasten liability on the assessee. (v) Further, the Assessing Officer did not even bother to conduct further enquiry by summoning the persons named in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that during the course of post search investigation the total drawings from Bansal Wires was mistakenly taken at Rs. 6,50,000 instead of Rs. 8 lakhs. Besides her husband's contribution from individual account and HUF a/c. aggregating to Rs. 1,24,000 was also not taken into account while estimating the difference of Rs. 12 lakhs. Therefore, the income was declared at Rs. 9 lakhs instead of Rs. 12 lakhs. The learned Assessing Officer found this explanation to be unsatisfactory. The assessee had shown house hold expenses at Rs. 19,100 only. Total monthly drawings of the assessee and her husband was Rs. 15,000 only. The drawings in these accounts were in the nature of house hold expenses rather than drawings for the purpose of construction of house. He, therefore, rejected the assessee's explanation in relation to balance of three lakhs and made addition of Rs. 3 lakhs in the block assessment. On assessee's appeal the learned CIT (Appeals) has concurred with the reasoning of the Assessing Officer. 38. During the course of hearing before us the learned counsel for the assessee argued that addition of the sum of Rs. 3 lakhs was totally outside the scope of provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the construction of house, cost of acquisition of these items had also been included. The assessee submitted that cost of furniture, house-hold valuables, air-conditioners etc. was Rs. 1,25,513 only. The learned Assessing Officer held that the assessee had not furnished any explanation or supporting evidence while declaring the total cost at Rs. 1,25,513/- only. As per the inventory prepared the cost of 9 air-conditioners was Rs. 2,10,000/-. The cost of other items such as Colour televisions, fridge, DVD Players, Home Theatre Systems etc. was also not less than Rs. 1,50,000/-. All these items were of expenses variety. The learned Assessing Officer, therefore, estimated the total expenditure at Rs. 3,60,000/- as against Rs. 1,25,513/- admitted by the assessee. Accordingly he made an addition of Rs. 2,34,487/- in the block assessment of Smt. Anita Gupta. On assessee's appeal the learned CIT (Appeals) concurred with the view taken by the Assessing Officer. 40. During the course of hearing before us the learned counsel for the assessee argued that here again the addition was outside the scope of provisions of Chapter XIV-B. During the course of search not an iota of incrimina ..... 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