2009 (4) TMI 73

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..... tation of the board resolution, the account of the appellant was credited by the amount of Rs.3.17 crores - appellant agreed before the CIT (A) that it is difficult for him to prove that he has changed the method of accounting from mercantile system to cash -therefore, the amount of Rs.3.17 crores is to be taxed as undisclosed income in the block period
V.C. DAGA and J.P. DEVADHAR, JJ. Mr. K. .....

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..... e company. 4. It is pertinent to note that the appellant is signatory to the said Board resolution and in implementation of the said resolution, the 66% profit has been credited to the ledger account of the appellant in the books of the company for the previous year ending 31/3/2000 at Rs.3,17,53,495/-. 5. Since the said amount was not offered to tax in the return of income filed by the appellan .....

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..... alini Properties Pvt. Ltd., the deduction of Rs.3,17,53,495/- claimed by M/s.Nalani Properties Pvt. Ltd. was disallowed and the matter was pending before the appellate authority, the assessing officer taxed the amount of Rs.3,17,53,495/- in the hands of the appellant on protective basis. 6. Challenging the block assessment, the appellant filed an appeal before CIT(A). During the appellate proceed .....

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..... lant is that firstly, no incriminating documents were seized from the residence of the appellant regarding the receipt of Rs.3.17 crores and, therefore, no addition could be made in the block assessment. Secondly, the question of accrual of income is a matter to be considered in regular assessment and not in block assessment, hence addition of undisclosed income in the block period is without any .....

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..... llant where the family members of the appellant are on the board of directors. The appellant was a party to the board resolution dated 22/6/2000 and in implementation of the board resolution, the account of the appellant was credited by the amount of Rs.3.17 crores. The appellant initially claimed that in the assessment year in question he had followed cash system of accounting and having realised .....

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