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TMI Blog2013 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... e same is confirmed. Regarding the Charak X-Ray, it appears that the same was lease out and the assessee was showing the income in its return since 16.04.1993 which was accepted by the Department. So, no double addition can be made out. Therefore, in this regard also, there is no reason to interfere with the impugned order. The impugned order is hereby sustained. Considering the case of CIT vs. S. Ajit Kumar (2006 (11) TMI 130 - MADRAS HIGH COURT) clearly indicates that the sentence "such other materials or information as are available with the Assessing Officer & quot, cannot be bisected or taken in isolation for the purpose of computation. Any other material cannot form basis for computation of undisclosed income of the block period. Hence, Commissioner as well as the Tribunal have the issue in accordance with the statutory provisions, and requires no interference. The appeal is accordingly dismissed. Also see CIT vs. R. M. L. Mehrotra (2009 (9) TMI 3 - ALLAHABAD HIGH COURT). In favour of assessee. - Income Tax Appeal No.-50 of 2003 - - - Dated:- 29-5-2013 - Rajiv Sharma And Dr. Satish Chandra, JJ. For the Appellant : D. D. Chopra (A.S.C.) For the Respondent : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a search. So, the registers and documents seized from the business premises during the course of survey gives the fair indication about the suppression of receipts and inflation of expenses by the assessee. He further submits that on the basis of the materials found from the business premises of the assessee, a valid estimate was made by the A.O. Regarding the lease of Charak X-Ray, he submits that the details of the business activity and agreement were not known. The profit rate of 45% was rightly estimated by the A.O. 6. Learned counsel further submits that the Tribunal has failed to take into consideration the amendment incorporated by the Finance Act, 2002, in the definition of "Undisclosed Income" under section 158 BC of the Act, which has enlarged the meaning of undisclosed income and, as such, now the block assessment of undisclosed income is to be based on the evidence found in search and the material or information gathered in post - search inquiries made on the basis of evidence found in search. He has drawn attention to circular no.8 of 2002 dated 27.08.2002 pertaining to the undisclosed income. It is reads as under: "Some appellate authorities have held that income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quest that the appeal filed by the department may kindly be dismissed. 9. After hearing both the parties and on perusal of record, it appears that a search was conducted at the residential premises of the assessee and survey was conducted at the business premisses. During the search, no cash, bullion, Jewellery or any material including the investment were found, which can be considered as undisclosed income. The additions were made on estimate basis after seizing the register from the business premises of the assessee. 10. Regarding the addition pertaining to the Blood Bank, it appears that the same was made on estimate basis. No document, register or material was found except the registers mentioned herein above. The A.O. has estimated the profit and made the addition without rejecting the books of accounts. Hence, in this regard, there is no reason to interfere in the impugned order passed by the Tribunal. The same is confirmed. 11. Regarding the Charak X-Ray, it appears that the same was lease out and the assessee was showing the income in its return since 16.04.1993 which was accepted by the Department. So, no double addition can be made out. Therefore, in this regard al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vious years.' A mere reading of the above provision clearly indicates that the sentence "such other materials or information as are available with the Assessing Officer quot; cannot be bisected or taken in isolation for the purpose of computation. Such other materials or information as are available with the Assessing Officer, should as per the section relatable to such evidence. The word "such" used as a prefix to the word "evidence" assumes much significance, in this provision, as it indicates only the evidence found, as a result of search or requisition of books of account or other documents, at the time of search. Any other material cannot form basis for computation of undisclosed income of the block period. Hence, we are of the view that the Commissioner as well as the Tribunal have the issue in accordance with the statutory provisions, and requires no interference. The appeal is accordingly dismissed. Applying the above ratio, we find there is no error or legal infirmity in the order of the Tribunal and the reasons given by the Tribunal are based on relevant materials and evidence." Similarly, in the case of Commissioner of Income Tax vs. R. M. L. Mehrotra; (2010) 35 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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