9911796707
TMI Blog2011 (7) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... The respondent is an individual-assessee and is a Supari merchant. He is a wholesale supari merchant and has started his business in May 1993 and has been filing the returns for the assessment year 1993-94. On the basis of the information in the possession of the Department and since there was reason to believe that assessee is in possession of money, assets, properties which represent either wholly or partly income which has not been disclosed for the purpose of Income Tax Act, 1961 (hereinafter called 'the Act'), a search was conducted under Section 132 of the Act on 28-1-1998. Thereafter assessment proceedings were initiated under Chapter XIVB and notice was issued under Section 158BC of the Act on 17-8-1998. The assessee declared the u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sp;UCO Bank 'Pramod Traders' 22-12-97 to 27-01-98 23,98,439 71,953 27-01-98 5,59,514 Total 7,54,263 18,29.400 During enquiry, assessing officer found that account No. Nil 'Sangam Traders' in Indian Bank and Pramod Traders in UCO Bank at Sl. Nos. 1 and 4 were benami accounts and though notices were issued to the person in whose name accounts were opened, there was no such address and a person who has introduced did not specifically state that he has introduced the assessee and accordingly computed the income of the assessee as under: "The total income of the assessee in comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate to the contrary. In the assessee's case, the above benefit of arranging all the 4 benami bank accounts in a chronological order and working peak thereon has not been considered for the reasons discussed in the order. In view of the above, the benefit of merging all the four bank accounts and working out peak on the consolidated basis has not been done to protect the interest of Revenue. In case, such consolidation of all the 4 benami bank account is done, then the over all peak credit is Rs. 5,59,514 as it falls on 27-01-98 in the account of M/s. Pramod Traders in UCO Bank, Mangalore." 3. Being aggrieved by the said order of the Assessing Officer, appeal was filed by the assessee before the appellate authority in ITA 13/MNG/CIT(A)MN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal, this appeal is filed by the Revenue which is admitted on 3-1-2007 for considering the substantial questions of law framed in the memorandum of appeal as follows: "(1) Whether, the Appellate Authorities were correct, in holding that a sum of Rs. 14,02,011/- cannot be treated as the income of the assessee by ignoring the search material, the admission made by the assessee and the accounts seized and consequently recorded a perverse finding. (2) Whether the Tribunal was correct in directing deletion of peak credit despite the fact that no cogent or relevant reason assigned and based on mere conjectures and surmises". 4. We have heard the learned counsel appearing for the appellant and learned counsel appearing for the respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d at by the Assessing Officer and the order passed by the appellate authority is liable to be set aside. 6. The learned counsel appearing for the respondent argued in support of the order passed by the Tribunal. He submitted that since the peak period ought to have been taken into by taking business profit as arrived at by the Assessing Officer, the order passed by the Tribunal is justified. 7. We have given careful consideration to the contentions of learned counsel appearing for the parties and scrutinized the material on record. 8. The material on record would clearly show that the finding of the appellate authorities insofar as the accounts in the name of 'Sangam Traders' in Indian Bank and 'Pramod Traders' in UCO Bank are concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be taken into account as addition cannot be accepted. It is clear from the material on record that the said disclosure was made when the amount received from Anil Kumar & Co. and peak credit in respect of these two accounts have already been taken into account and therefore, the said deletion is also justified and does not call for interference in this appeal. 10. Accordingly, the appeal is allowed in part. We answer the substantial questions of law partly in favour of the appellant so far as it relates to the calculation of the amount of peak credit and in the negative in respect of addition of Rs. 2 lakhs voluntarily disclosed as additional income. The finding of the Tribunal that amount of peak credit shall be taken as Rs. 2,27,390/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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