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TMI Blog2007 (2) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... 4/Bang/2002 dated January 31, 2005, and in M. P. No. 77/Bang/2005 in the case on hand. 2 The facts in brief are as under : The assessee is the proprietor of M/s. Premier Service Station and Malai Mahadeswara Auto Agency. On November12 1999, the Department conducted search and seizure operation under section 132 of the Income-tax Act, 1961, at the residential and business premises of the appellant. Documents were recovered. Thereafter, the appellant was asked to file his return for the block period 1990 to 1999. The appellant declared a total undisclosed income of Rs. 2,01,091. The Assessing Officer concluded the block assessment dated November 28, 2001. He concluded a sum of Rs. 1,02,28,563 as undisclosed income. He imposed a tax of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t telescoping the amount relating to hand loans with the amount of payment made by Sri Krishnappa relating to the sale of petrol? (c) Whether, the Tribunal was justified in law in holding that there are no mistakes in their order liable for rectification ? (d) Whether the charging of interest under section 158BF is in order? 3 We have heard Sri Shankar, learned counsel appearing for the appellant. He took us through to the material on record to contend that the Tribunal is wrong in the case on hand. He would say that without there being any evidence, an adverse order has been passed against the appellant. He therefore says that the orders impugned are perverse as understood in law. In so far as the merits of the matter is concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized documents included various documents, books, written cheques, small petty bills, etc. It was observed that most of the documents were related to purchase of petrol/diesel/oil, various hand loans taken/repaid for different periods, work-in-progress details, dishonoured cheques, some chit details, personal expenditure and receipts, etc. After noticing the seized material, the assessee was asked to give his explanation as to why the gross receipts of oil sale should be treated as undisclosed receipts. The assessee produced some of the purchase bills. Noticing the same, the Assessing Officer pro posed to estimate 40 per cent. profit upon undisclosed oil sale, which has been worked out to Rs.9,85,958. The Assessing Officer also noticed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry maintained for the amount received from Krishnappa. He had chosen to add Rs. 23.25 lakhs as undisclosed amount in the case on hand. There were household withdrawals and the same was added. Ultimately, he passed an adverse order. On appeal, the Appellate Commissioner dismissed the appeal. A second appeal was filed before the Tribunal. The Tribunal notices the material facts and thereafter the Tribunal adopted the profit percentage at 25 per cent. instead of 40 per cent. in so far as income from undisclosed oil sale of Rs. 9,85,958 is concerned. The Tribunal also confirmed undisclosed income from chits of Rs. 2,72,050 and undisclosed income of Rs. 61,000 on account of air travels in the matter. In so far as the election expenses is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the course of search, certain rough cash books were found and the assessee has made entries for the sales made in cash. It is noticed that there were entries as regards hand loans taken in cash on some of the dates. The assessee's explanation was that of cash loans. However, the assessee was unable to satisfy all the three fact finding authorities with regard to hand loan transactions in the case on hand. Loans were supposed to have taken place in the year 1977. The same is not repaid even till 2001. Search has taken place in the year 1999. Some of the letters on which reliance was placed are of the year 2001. A reading of the material on record as a whole would indicate that all the three fact finding authorities have chosen to hold ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities, in our view, are justified in holding against the appellant. In so far as interest is concerned, all that we would say is that a right is available in terms of section 138 in the matter of levy of interest. The same has been followed by the Department. We, therefore, do not find any acceptable grounds with regard to reconsideration of this aspect of the matter. 7 Before concluding, we are disturbed to note the findings of the Tribunal with regard to election expenses in para 16 of the order. The assessing authority in his order dated November 28, 2000, has ruled that the assessee has stated "that these entries are related to 1998 election expenses and these funds were utilised through me for the purpose of hiring vehicle f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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