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TMI Blog2012 (9) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... ,42,511 towards the undisclosed purchase of sandal wood. According to the ld.representative, there was search in the premises of the assessee u/s 132 of the Act on 28-08-2002 and 29-08-2002. Some incriminating materials were found and the same were seized. According to the ld.representative, the assessee was a partner in M/s M.R. Industries, Kolhapur, Maharashtra. However, even after retirement, the assessee's name was used as reference for purchase of the property by the firm. However, this explanation of the assessee was not accepted by the assessing officer. On appeal by the assessee, the Commissioner of Income-tax(A) found that the undisclosed income of the assessee has to be estimated on the basis of the sales made by the assessee.. The Commissioner of Income-tax(A) estimated the profit at 20% of the sales. Because of estimation made by the assessing officer he confirmed the addition to the extent of Rs.49,71,500 and gave relief to the extent of Rs.33,71,011. The assessee is challenging the order of Commissioner of Incometax( A) to the extent of investment in sandal wood confirmed whereas the revenue filed the appeal in respect of relief granted by the Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed from the firm and after retirement he had no connection whatsoever except acting as nodal agency. The Commissioner of Income-tax(A) estimated the profit at 20% on the sandal wood business. He has not referred to any of the seized material. When the material found during the course of search operation discloses the investment made by the assessee and the assessee has also accepted the statement found in the seized material, this Tribunal is of the opinion that there is no need for the Commissioner of Income-tax(A) to estimate the profit. Once the assessee admits the credit it is for the assessee to explain the source of such credit for making investment in the sandal wood business. Therefore, the Commissioner of Income-tax(A) deleted the addition to the extent of Rs.33,71,011 without referring to the seized material. Therefore, this Tribunal is unable to uphold the order of Commissioner of Income-tax(A). However, the matter needs to be reconsidered in the light of the seized material found during the course of search operation and the subsequent examination of the assessee in reference to the seized material. Accordingly, the order of the Commissioner of Income-tax(A) is set aide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, Shri S.R. Senapati, the ld.DR submitted that the assessee has disclosed agricultural income in the cash flow statement. The assessee has disclosed agricultural income in the return and also offered agricultural income for taxation. The assessee is not maintaining any books of account for the agricultural income. Therefore, the assessing officer has rightly estimated the income after considering all the material available on record. On estimation the assessing officer found difference of Rs.8,24,706 from the total income returned and disclosed as agricultural income. Therefore, according to the ld.representative, the Commissioner of Income-tax(A) has rightly confirmed the addition to the extent of Rs.3,20,000 as "Income from other sources". 11. We have considered the rival submissions on either side and also perused the material available on record. From the order of the Commissioner of Incometax( A) it appears that the assessee has returned agricultural income regularly for the assessment years 1997-98 to 2000-01. The assessing officer has not pointed out any material regarding the search. The Commissioner of Income-tax(A) has not referred to any seized material. The agricultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the addition was made based on two loose sheets. The loose sheets contained the cost of the land proposed to be acquired. According to the ld.representative, the cost of land as per the loose sheet found does not reflect the stamp duty, registration charges, etc. Another loose sheet relates to projected balance-sheet filed before the Canara Bank, Mannarkad Branch. Therefore, the projected figure for the purpose of filing the same before the banking authorities cannot be a basis for making addition. 14. We have considered the rival submissions on either side and also perused the material available on record. From the order of the assessing officer, it appears that document marked as RRA3 was seized from the residence of the assessee. This document shows the capital investment of assessee as on 31-12- 2000 at Rs.78,23,054. However, both the parties have not filed the copies of the document marked as RRA3 before this Tribunal. Therefore, this Tribunal had no occasion to verify the entries in the seized document. From the order of the assessing officer it appears that there was a survey in the premises of M/s M.A. Motors u/s 133A of the Act. The Commissioner of Income-tax(A) fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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