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TMI Blog2012 (9) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... But the fact remains is that the assessee has invested the money in the partnership firm, therefore, the same has to be necessarily added as undisclosed income - against assessee. Addition on undisclosed income - Held that:- It is not in dispute that Pazheri Communication was a proprietory concern but the income from this proprietory concern was not disclosed to the department earlier which was admittedly unearthed during the course of search operation. During the course of search operation the profit and loss account and balance sheet for the period 01-04-2001 to 31-03-2002 was found relying on which AO computed the undisclosed income. It is not the case of the assessee that the balance-sheet and profit & loss account found during the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Commissioner of Income-tax(A)-I, Kochi dated 21-03-2005 and pertain to block period 01-04-1996 to 28-08-2002. Since both the appeals arise out of the same order of Commissioner of Income-tax(A), we heard the same together and dispose them of by this common order. 2. Let us first take up the assessee s appeal in ITSS 113/Coch/2005. 3. The first ground of appeal is with regard to estimation of agricultural income of Rs. 20,04,828. 4. Shri C.R. Harish, the ld.representative for the assessee submitted that the assessee has disclosed agricultural income in the cash flow statement and also in the return of income. According to the ld.representative, the assessee has also disclosed additional agricultural income in respect of propert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disclosed income. According to the ld.representative, the Commissioner of Income-tax(A) has rightly confirmed the addition made by the assessing officer. 6. We have considered the rival submissions on either side and also perused the material available on record. The assessee has disclosed Rs. 29,45,000 as agricultural income in the block return. It is a disclosure made by the assessee voluntarily. In the absence of any material to support the claim of the assessee towards agricultural income, the assessing officer has taken the same as undisclosed income. When the assessee claims that the agricultural income was earned it is for the assessee to support that the income was earned during the year under consideration. Moreover, what was sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d six months, therefore, inclusion of entire income for the whole year in the hands of the assessee is not correct. 9. On the contrary, Shri S.R. Senapati, the ld.DR submitted that as per the profit loss account found during the course of search operation, from 01-04-2001 to 18-03- 2002 which was marked as RRA2, the assessing officer computed the total income. According to the ld.DR, this income was not disclosed to the department earlier which was unearthed during the course of search operation. 10. We have considered the rival submissions on either side and also perused the material available on record. It is not in dispute that Pazheri Communication was a proprietory concern dealing in mobile, handsets, prepaid sim card and other a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the sellers on 25-09-1998 was found which disclosed the actual sale consideration of Rs.79,56,000. According to the ld.representative, the assessing officer has taken this amount as actual sale consideration and computed the capital gain. However, the Commissioner of Income-tax(A) found that the assessee has admitted Rs.32,03,000 in addition to his share of capital gain already disclosed in the return of income. Therefore, the addition made by the assessing officer to the extent of Rs.35,78,857 is not correct. According to the ld.representative, the 50% of the share of the assessee on the deduction of indexed cost of acquisition of land shall be Rs.7,51,715. The Commissioner of Income-tax(A) without any discussion restricted the capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h law after giving reasonable opportunity to the assessee. 15. Now coming to the departmental appeal filed by the assessee, the only issue is with regard to deletion of Rs.5,26,500 being the deficiency in the agricultural income of Smt. P Khadeeja. 16. Shri S.R. Senapati, the ld.DR submitted that the deficiency in the cash flow statement filed by the assessing officer was added as undisclosed income in the hands of the assessee. According to the ld.representative, Smt. Khadeeja is mother of the assessee. The Commissioner of Income-tax(A), however, deleted the addition made by the assessing officer. The ld.DR submitted that the deficiency found in the cash flow statement filed by Smt. P Khadeeja has to be treated as undisclosed income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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