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TMI Blog2012 (9) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... sbelieved the cash flow statement in respect of the agricultural income and the balance was added as undisclosed income. In the absence of any material found during the course of search operation the assessing officer cannot make any addition - in favour of assessee. Addition on unexplained cash credit - Held that:- As concerned persons in this case confirms that they has given the gold jewellery as capital investment in the firm, the addition if any has to be made only in their hands only and not in the hands of the firm. No material is found in the course of search proceedings that the entry found in the books of account with regard to the credit of gold jewellery is false, thus AO cannot make any addition with regard to the investment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appeals, we heard the same together and dispose them of by this common order. 2. Let us first take up the revenue s appeal in ITSS 137/Coch/2005. 3. The first ground of appeal is with regard to deletion of addition of Rs. 1,18,000 being the shortfall in the cash flow statement of Smt. Kadeeja. 4. Shri S.R. Senapati, the ld.DR submitted that as per the details furnished by the assessee in the cash flow statement, it has been shown that the firm has received Rs.4 lakhs from Smt. P Khadeeja, who is none other than the mother of Shri P Abdul Karim, partner of the firm. The assessee filed cash flow statement to support the source for investment by Smt. Khadeeja. The assessee has claimed Rs.2,50,000 as agricultural income for the year en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed income was computed on the basis of the cash flow statement filed by the assessee in the course of the assessment proceedings. In fact, the assessing officer disbelieved the cash flow statement in respect of the agricultural income and the balance was added as undisclosed income. In the absence of any material found during the course of search operation, this Tribunal is of the opinion that the assessing officer cannot make any addition. Therefore, the Commissioner of Income-tax(A) has rightly deleted the addition made by the assessing officer. Accordingly, the order of the Commissioner of Incometax( A) is confirmed. 7. The next ground of appeal is with regard to deletion of addition of Rs.2,66,000 and Rs.1,40,873 made as unexplained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the block assessment proceedings. 10. We have considered the rival submissions on either side and also perused the material available on record. It is not in dispute that the credit entry was found in the form of gold to the extent of Rs.2,66,000 in the name of Smt.Ayishakutty. The case of the assessee is that Smt.Ayishakutty received gifts from her parents and relatives. Smt.Ayishakutty confirms that she has given the gold jewellery as capital investment in the firm. When Smt.Ayishakutty confirms that she gave the gold jewellery, the addition if any has to be made only in the hands of Smt.Ayishakutty and not in the hands of the firm. No material is found in the course of search proceedings that the entry found in the books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd until it is shown that the entry found in the books of account is false on the basis of material found during the course of search operation, this Tribunal is of the opinion that it cannot be treated as undisclosed income. The undisclosed income is defined in section 158B(b) of the Act which clearly says that the credit found in the books of account has to be shows as false on the basis of the material found during the course of search operation. In the absence of any such material we do not find any infirmity in the order of the lower authority. Accordingly the same is confirmed. 13. Now coming to the assesee s appeal in ITSS 116/Coch/2005, the first ground of appeal is with regard to tax deducted at source to the extent of Rs.63,507. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the income was estimated at 5% of the turnover is not in dispute, this Tribunal is of the opinion that the Commissioner of Income-tax(A) has rightly rejected the claim of the assessee for depreciation. Accordingly, the order of the Commissioner of Income-tax(A) on this issue is confirmed. 19. Now coming to the appeal filed by the revenue in ITSS 44/Coch/2006 against the order passed by the Commissioner of Income-tax(A) u/s 154 of the Act, Shri S.R. Senapati, the ld.DR submitted that the Commissioner of Income-tax(A) has deleted the addition of Rs. 16,04,721 being the value of jewellery brought in by the partners of the assessee firm. According to the ld.DR, the income introduced in the name of the partners was rightly added ..... X X X X Extracts X X X X X X X X Extracts X X X X
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