2004 (6) TMI 260

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....nd M/s Ores India. A search operation under s. 132(1) was undertaken in the case of the assessee group including assessee's residence and places of business. A paper was found marked as PA-5 at the residence of the assessee on which some jottings were noted. The AO sated that these notings were in the handwriting of the assessee and, therefore, he has to explain why the total of which comes to Rs. 7,55,000, were added in the income of the assessee. It was submitted by the assessee during the course of search itself that this is estimation of expenditure to be incurred for forthcoming period. It was also submitted that he roughly did certain calculations to work out fund requirement for probable expenditure for his mining job of M/s Ores....

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....orting it. It is also not the case of Department that out of all the entries found on the loose paper, any one of them was also appearing in the regular books of account so as to persuade us to accept all the entries as genuine. Tribunal, Mumbai, in the case of DA Patel vs. Dy. CIT (2001) 78 TTJ (Mumbai) 969 held that, "Simply because receipt of paper was found during the search at the premises of the assessee he could not be saddled with tax liabilities unless it could conceivably be related to the assessee in some reasonable manner." 6. As no corroborative material has been brought on record by the Department to reject the assessee's contention, we do not find any reason on interfere in the order of the CIT(A) for deleting the impu....

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....cted the impugned amount of advance to the assessee. We direct accordingly. 13. The last grievance for the Revenue is deletion of addition of Rs. 1,20,000 towards household expenses. 14. Keeping in view the standard of the assessee and his various sources of income, the AO estimated the household expenses at Rs. 10,000 per month. As no withdrawal was made for such household expenses, he added Rs. 1,20,000 to the undisclosed income of the assessee. 15. It was argued by the learned Departmental Representative that CIT(A) has wrongly relied on the orders of the Tribunal which are applicable in the case of block assessment proceedings under s. 15BA and not to the search cases taking prior to the special procedure for the block assessme....