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TMI Blog2015 (11) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... d and returns were not filed, the authorities laid their hands on the undisclosed income. Therefore, the Tribunal was justified in the facts of the case in holding that the said amount is to be assessed in the hands of the Hindu undivided family in the aforesaid circumstances and not in the hands of the assessee in his individual capacity. In fact during such proceedings, the assessee had requested the authorities to adjust this undisclosed income and seized cash as advance tax for Hindu undivided family and, therefore, we do not find any infirmity in the order passed by the Tribunal, which calls for interference. Hence, we answer the first substantial question of law in favour of the assessee and against the Revenue. As the finance busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red this appeal against the order passed by the Tribunal, which has set aside the order passed by the lower authorities on the ground that the undisclosed income is to be assessed in the hands of the Hindu undivided family, in so far as the lottery business is concerned and in so far as the finance business is concerned, it is to be assessed as an association of persons under the name Easy Finance and not under the name of the assessee in his individual capacity. 2. The assessee is doing lottery business under the trade name M/s. Luck Associates, Mangalore. He is also running unregistered finance business under the name and style of Easy Finance. A search as conducted on November 10, 2000, and a cash of ₹ 8,00,000 was seized and go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u undivided family. In so far as the finance business is concerned, it was done under the name of Easy Finance. The seized materials show the names of Prakash, Rajesh and Jagadish, who are the members of the association. In fact the notice was issued to the association of persons. In those circumstances, the Tribunal was of the view that even the undisclosed income relating to the finance business have to be assessed in the hands of association of persons and not in the hands of the assessee, in his individual capacity. Accordingly, it allowed the appeal, set aside the impugned orders and accepted the case of the assessee. 4. Aggrieved by the said order, the Revenue is in appeal. This appeal was admitted to consider the following substan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onclusion that the amount is to be assessed in the hands of the assessee as an individual instead of Hindu undivided family is that the Hindu undivided family did not have money to invest in this business as they have not maintained any accounts. The said inference drawn by the assessing authority is without any basis. As is clear from the aforesaid facts, the sales tax registration was done on August 2, 1999, and within two months, the father died. Therefore, the question of the father maintaining the books of account would not arise. After the death of the father, the son is carrying on with the said business. If he had maintained the accounts and if he had disclosed all the amounts in the accounts, it seems that it would not have been tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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