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TMI Blog2024 (11) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... ch enquiry and other proceedings which are in the nature of consequences of the evidence found as a result of search. Affidavit of the employees have not been considered - It is argued that the assessee was not provided sufficient opportunity and fair hearing has not been provided to him - Large number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, which were not in the name of the assessee, have also been found from his premises. Copies of number of maps of godowns and vends, which were operated by various companies were also recovered from his premises. There were 7+9+7 truck loads recovered from three different places. Stock position of various liquor vends was also found. During the courses of search, statements of number of persons were also recorded, who stated that they were salesmen working in those vends. The assessee was their employer and real owner of the vends. Merely because the license was issued by the Excise Department for various liquor vends, income from which the learned assessing officer has found to be undisclosed income of the assessee cannot absolve the concerned a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Tribunal partly allowed the appeal on 18.08.2006 and many of the additions made by the assessing officer were not accepted. It is against that order that the Revenue and the Assessee are in appeals before this Court. 3. So far as IT A No. 51 of 2007 preferred by Mr. Mange Ram Mittal is concerned, we find the points raised by learned counsel for the appellant therein are that the assessment was made only on the basis of material uncovered during search. The Parliament had enacted a separate Chapter-XIV-B of the Act laying down the special procedure for assessment of search cases which is a self contained code. The amount to be subject to tax under the said chapter should have direct nexus with the material discovered during the course of such search operations alone. The assessment should be restricted only to the evidence found during the course of search. The words are relatable to such evidence, added with retrospective effect to Section 158-BB of the Act from 01.07.1995, and re-enforced with the legal position that was not relatable to the evidence found as a result of search ought not be included in the computation of undisclosed income. We find that the Tribunal has, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition relating to such previous years; (e) where any order of settlement has been made under sub-section (4) of section 245D, on the basis of such order; (f) where an assessment of undisclosed income had been made earlier under clause (c) of section 158BC, on the basis of such assessment. Explanation. For the purposes of determination of undisclosed income,- (a) the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss computed in accordance with the provisions of [this Act] without giving effect to set off of brought forward losses under Chapter VI or un absorbed depreciation under sub-section (2) of section 32: [Provided that in computing deductions under Chapter VI-A for the purposes of the said aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32;] (b) of a firm, returned income and total income assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion is not of what has not been disclosed but of what would not have been disclosed for the purposes of the Act. Answer to that question would depend on the facts and circumstances of each case. 6. We, therefore, reject the submissions made by learned counsel for the assessee. 7. The next submission of learned counsel for the assessee that the affidavit of the employees have not been considered. It is argued that the assessee was not provided sufficient opportunity and fair hearing has not been provided to him. 8. We find that plethora of other material and partnership-deeds were found at the residence of the assessee during the search and written documents containing names and father's name of persons who are mentioned as partners in the partnership-deed relating to M/s Mittal and Company, M/s Shanker Lal Company and original challans of license fee running into crores paid to Excise Department were also found. Large number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, which were not in the name of the assessee, have also been found from his premises. 9. Copies of number of maps ..... X X X X Extracts X X X X X X X X Extracts X X X X
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