9911796707
TMI Blog2002 (8) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... the block assessment until there is evidence to the contrary? - Whether the addition on the basis of examination of the regular books of account seized during the course of search is out of the purview of the block assessments?" - the appeal is partly allowed X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished by Mr. Mathur, an addition of Rs. 41,400 has been assessed for the assessment year 1993-94 and an addition of Rs. 2,76,302 has also been made in the assessment year 1996-97. Before us, the issue relates to the investment made for the construction of the building where the issue was whether the valuation of the building should be at the rate of Public Works Department (PWD) or at the rate of Central Public Works Department (CPWD). The other issue before us is whether Rs. 41,400 deposited by the assessee-company be treated as undisclosed income of the assessee or not? Mr. Mathur, learned counsel for the Revenue, submits that when the amount of Rs. 41,400 was found to be credited in the name of various parties, they were not produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the block year, the assessee had filed a return showing his income as "nil". During the course of assessment, the Assessing Officer found that there were deposits of Rs. 41,400 in the name of various parties. As the genuineness of the cash credits was not proved, the Assessing Officer had assessed this income of the assessee as undisclosed income for the assessment year 1993-94. There is no dispute that the entries of the said deposits were found in the regular cash books of account of the assessee which were seized during the course of search and when they were not proved nor the creditors produced by the assessee, it can be treated as undisclosed income of the assessee for the assessment year 1993-94. Section 158B(b) relates to u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee could not explain the genuineness of the deposits, this amount was never disclosed, it is an undisclosed income of the assessee. The Tribunal has committed an error in holding that as the entries were found in the regular books of account, therefore, it cannot be treated as undisclosed income. The view is contrary to the provisions of Chapter XIV-B of the Income-tax Act, 1961. In Chapter XIV-B of the Act, special provisions for assessment in search cases have been given and if any amount of income has not been taxed and during the course of search, if some "undisclosed" income is found on the basis of material seized, that should be treated as undisclosed income as per the scheme of special assessment under the aforesaid Chapter. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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