9911796707
TMI Blog2013 (4) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... f fruits under the name and style of Ms./ MDR at 4, Ballav Das Street, Kolkata-7. A search and seizure operation was conducted on 05.09.2002 at the business places of the assessee as well as his four sons. In response to notice u/s 158BC(a) of the Act the assessee filed block return showing an income of Rs.15,00,000/-. The undisclosed income offered in the block return was on undisclosed sales noted in the seized account marked MDR-1 to MDR-24 and SM-1 to SM-9 found from the premises of the assessee as well as certain other documents found from the possession of the sons which were owned up by the assessee. During the course of the assessment proceedings the assessee submitted break up of undisclosed income along with the detailed working u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s parked with more than 250 debtors in the fruit market without considering the bad debts. Therefore the net commission, calculated by Assessing Officer at a rate of 3% of the unrecorded sales is supported by such unrecorded assets in the form of debtors as evidenced by the list of debtors. The burden of proof is certainly on appellant to produce such debtors and establish that the debts parked with them are lost. Appellant was given sufficient opportunity during the appellant proceedings to produce the debtors before the Assessing Officer who did not repay the debt to appellant. The plea of appellant that Assessing Officer asked him to produce only 8 debtors for verification during appellant proceedings is not relevant because the burden w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee prior to the search being taken at the premises of the assessee u/s 158BC (a) of the IT Act. The undisclosed income for the block period had to be computed in respect of the previous years falling with the block period in accordance with the provision of the Income Tax Act on the basis of the evidences found as a result of such requisition of books of accounts or other documents such other material or information are available with the Assessing Officer and relatable to such evidences. The income so computed is to be reduced by the aggregating of the total income or is to be increased by aggregate of the total loss of such previous year as has been mentioned u/s 158BB(1)(a) to 158BB(1)(f). The bad bets are deductible u/s 36(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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