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TMI Blog2013 (11) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction of the Assessing Officer to make block assessment for the undisclosed income cannot be found fault with. The assessments were made based on the materials seized during search and seizure - Entire matter had been fairly considered on the basis of evidence on record and the Tribunal has reconsidered the entire issue and confirmed the view expressed by the Assessing Officer – Decided against the Assessee. - ITA. No. 92 of 2012 - - - Dated:- 3-10-2013 - Manjula Chellur And A. M. Shaffique,JJ. For the Appellant : Sri T. M. Sreedharan, Sr Adv, Smt Nisha John, Sri V. P. Narayanan, Smt Boby M. Sekhar For the Respondent : Sri Jose Joseph, SC, Income Tax JUDGMENT Per : A M Shaffique : A. M. Shaffique, J This is an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Bar licence fee from the undisclosed income determined. In respect of the assessment year 1994-95, determination of undisclosed income was set aside and the issue was remitted to the Assessing Officer. In respect of assessment year 1995-96 and 1996-97, the same direction was issued. In respect of assessment year 1997-98, the determination of undisclosed income was confirmed. Annexure B is the said order. The Assessing Officer thereafter made fresh assessments pursuant to the directions contained in Annexure B appellate order for the assessment years 1993-94, 1994-95, 1995-96 and 1996-97 and determining the undisclosed income for the block period as Rs.91,04,290/-. Annexure C is the said order dated 11.12.2007. The appellant preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed income for the assessment year 1994-95 and computation of undisclosed income for the assessment years 1995-96 and 1996-97 included in the block assessment without reference to the seized documents and the evidence on record. Are not the estimates of undisclosed income made for these years arbitrary and unjustifiable and unsupported by any material? iv)Should not the appellate Tribunal have set aside the additions which are contrary to the statutory provisions and unsupported by seized material? v) Is not the contrary decision taken by the Appellate Tribunal unsustainable? vi)Is the order of the Appellate Order legal, valid and sustainable in law? 4. The main contention urged by the learned counsel for the appellant was the manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, the Ex-Managing Partner from whose residence profit and loss account was seized. She confirmed her earlier statement dated 12.2.1996 and 15.02.2002 confirming the said account to be that of the assessee and further clarifying that she has signed the statement only after reading the contents thereof. The Tribunal found that when the assessee has challenged the assessment based on evidence found during search and further materials in relation to that evidence and having ignored the profit and loss account as being not reliable for the purpose, the assessing officer thus had no option other than to make the best assessment. The Tribunal further found that the computation of undisclosed income has necessarily to be on the basis of evidence f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pted turnover of Rs.18.79 lakhs, there has been an omission to disclose the same to the Revenue. Hence, the suppression of sales for the year at least to the extent of Rs.18.79 lakhs, was proved which came to surface only as a result of search. Therefore, the Assessing Officer could not be faulted for estimating the undisclosed income for the year at Rs.4 lakhs, (computed at 21.29%) which works out to less than the ratio of net profit as found to have been earned for the other years, which stand assessed and in fact accepted. The assessee has not brought any material on record to show that it had not earned its normal average ratio of profit (which varies from 22% to 36%). Having regard to the aforesaid facts and circumstances, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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