9911796707
TMI Blog2013 (6) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... er the date of search - addition as undisclosed income confirmed - Against assessee. Unexplained investment in gold biscuits - Held that:- As the assessee herein did not maintain any books of account, meaning thereby, the transaction of receipt of Rs.4.70 lakhs was not recorded in any of the documents prior to the date of search. Even the purchase of gold biscuits were not recorded anywhere. AO also found that the assessee did not have any sales tax registration number also. Thus, it is seen that the assessee is trying to link the withdrawal of Rs.3.00 lakhs made by his brother with the claim of receipt of loan of Rs.4.70 lakhs from him. Since the withdrawal was less than Rs.4.70 lakhs, a further claim with regard to the sale of jeweller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed sources cannot be considered as a business loss, as claimed by the assessee. Also the undisclosed source was determined on the basis of transactions pertaining to a part of year, i.e, for the period from 03-09-2000 to 14.11.2000. The profit or loss of any business concern accrues only as on the last day of the financial year and accordingly, the excess cash outflow in the form of expenditure cannot be considered as a business loss. Against assessee. Deduction u/s 158BB(C)(1) claimed - Held that:- A careful perusal of the said provision would show that such a deduction is permissible "on the basis of entries as recorded in the books of accounts and other documents maintained in the normal course on or before the date of search". Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he block assessment was completed by making various additions. In the appeal filed before the ld CIT(A), the first appellate authority confirmed the additions listed as (a) to (c) in the preceding paragraph. Aggrieved by the same, the assessee has filed this appeal before us. The assessee has also filed additional grounds in respect of items listed as (d) and (e) in the preceding paragraph. 4. We have heard the rival contentions on various issues. The first issue relates to the assessment of cash balance of Rs.1,30,000/- found at the time of search. Before the assessing officer, the assessee claimed that the said amount belongs to his brother named Shri Manohar Baburao Jadav, who was the proprietor of a jewellery shop named M/s Dhanalaksh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirming the assessment of Rs.1,30,000/- as the undisclosed income of the assessee. 6. The next issue relates to the assessment of unexplained investment in gold biscuits. During the course of search, 18 gold biscuits valued at Rs.9,36,000/- was found. The assessee surrendered a sum of Rs.4,66,000/- as his undisclosed income out of the above said amount of Rs.9,36,000/-. With regard to the balance amount of Rs.4,70,000/-, the assessee claimed that he received the same from his brother Shri Manohar Babu Rao Jadhav. With regard to the sources of his brother, it was claimed that Shri Manohar Babu Rao Jadhav withdrew a sum of Rs.3.00 lakhs from his proprietary concern, viz., M/s Dhanalakshmi Jewellery and further realised a sum of Rs.1.70 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt was to the tune of Rs.6,28,882/-. The assessee claimed the sources of the same as agricultural income. In the cash flow statement, the assessee claimed agricultural income of Rs.2,50,000/- and Rs.4,00,000/- respectively for the financial years 1997-98 and 1998-99. The AO rejected the claim of receipt of agricultural income and accordingly assessed the cash deficit of Rs.6,28,882/- as the undisclosed income of the assessee. The Ld CIT(A) also confirmed the order of the AO on this issue. 9. We notice that the assessee has claimed the receipt of agricultural income in the cash flow statement. As pointed out by the tax authorities, the assessee did not furnish any material to substantiate the claim of receipt of agricultural income. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.6,28,882/- as the undisclosed income of the assessee. 10. In the additional grounds, the assessee has raised a plea for treating the above said amount of Rs.6,28,882/- as "loss from business" and consequently has sought for set off of the same against other income assessed as undisclosed income. In our view, the said claim of the assessee is liable to be rejected on two grounds. First Rs.6,28,882/- represents expenditure incurred out of undisclosed sources and what was assessed is not the expenditure, but the "quantum of undisclosed sources". The cash outflow from undisclosed sources cannot be considered as a business loss, as claimed by the assessee. Secondly, the undisclosed source was determined on the basis of transactions pertaini ..... X X X X Extracts X X X X X X X X Extracts X X X X
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