TaxTMI 
TaxTMI 
2000 (2) TMI 193
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....us for condonation of delay in filing the appeals. It was argued by the learned counsel that when the assessment order under s. 158BA were made the same were served on the appellants along with the notices under s. 156 of the Act. On the demand notices in respect of both the companies the authorities having appellate jurisdiction was mentioned as CIT(A)-XXIII,New Delhi. Accordingly the appeal in both the cases was filed in his office on27th Jan., 1998which was well within the time prescribed under s. 253(1)(b). The photocopy of the demand notices were also filed to support the claim. It was argued that even the CIT(A) had fixed the hearing in those cases when it was explained to the assessee that as the search and seizure operation took place prior to1st Jan., 1997the first appellate authority was the Tribunal. According the CIT(A)-XXIII passed the orders by holding that the appeals were not maintainable. The assessees have, therefore, filed appeal before the Tribunal on22nd May, 1998. It was argued that as there was a reasonable cause in filing the appeals late the same may be condoned. The learned Departmental Representative stated that in the circumstances mentioned above there ....
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....nbsp; 15,17,709 1991-92 11,52,365 1992-93 15,64,169 6. Similar additions were made in the case of the other appellant i.e. Jupiter Estates (P) Ltd. but the figures were different. 7. Both the assessees have come up in appeal before us against the additions made referred to above. It was argued by the learned counsel that the assessment orders have been passed under s. 158BA of the Act. The scope of the word "undisclosed income" referred to in s. 158B was very limited. This section applies only when certain undisclosed income is computed due to search and seizure operation based on any entry in the books of account or the documents or transaction where such money, bullion, etc. or the entry in the books of accounts or the documents or transaction represent wholly or partly income which has not been or would not have been disclosed. Thus, the....
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....group on the same day so that cross verification of various transactions could be done. Unfortunately the AO called the representatives of Kohli group in the morning and the appellant's representative in the afternoon. A copy of the letter so addressed to the AO was also filed. The learned counsel stated that it was under these circumstances that the cross verification of-various transactions between the White Lily Estate (P) Ltd. vs. Asstt. CIT (Del) appellant companies and the members of Kohil group could not be done. The learned counsel also filed photocopies of the note sheet of the relevant assessment records to prove its contention. While referring to the order under s. 158BA wherein the AO has observed that Shri U.S. Kohli has denied any transaction with the appellant companies, the learned counsel took us to the letter, dt. 10th Dec, 1997 of Shri U.S. Kohli placed at p. 122 of the paper-book along with a statement was attached which indicated that no transaction was done between the members of the Kohli group with the appellant companies. This letter was initialled by one Shri U.S. Kohli. The learned counsel stated that the fact was otherwise. Actually Shri U.S. Kohli puts ....
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.... the rival submissions. Admittedly the assessment orders have been passed by the AO under s. 158BA of the Act in respect of both the appellants. Sec. 158B(b) defines the word "undisclosed income". The Bombay Bench of the Tribunal in the case of Sunder Agencies at p. 256 has held as under: "The head note of s. 158BA is : "Assessment of undisclosed income as a result of search". It indicates that section deals only with those assessments which concern with the undisclosed income detected as a result of search. The meaning of head note conveys nothing more nothing less than this. Now we come to the body of the section. It begins with non obstante clause. It applies for search conducted after30th June, 1995under s. 132, etc. The total undisclosed income relating to block period is not subject to ordinary rates of tax. It is subject to the rate specified in s. 113 of the Act, irrespective of the previous year or the year to which such income relates, and irrespective of the fact whether regular assessment for any one or more of the relevant assessment years is pending or not." 10. We also find that Pune Bench of the Tribunal in the case of Parakh Foods Ltd. vs. Dy CIT (1998) 64 IT....
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....dently the search by itself, had not been able to discover or unearth any other income earned by the assessee during the block period." 13. If the ratio laid down in the above decisions is applied to the case of the appellants it is clear that the AO has not quantified the undisclosed income assessable in the hands of the appellants under 158BA of the Act. The AO has treated every income even when the same was disclosed earlier, as undisclosed income under s. 158BA of the Act. Certainly while doing so he has not applied his mind to the provisions of s. 158BA. 14. We also find that the AO has made substantial additions under s. 68 of the Act in each case on the basis of a letter purported to be signed by one Shri U.S. Kohli who has confirmed on behalf of various members of the Kohli group impliedly confirming that they did not have any transaction of loans or advances with the appellant companies in different years. But we find that each member of Kohli group has filed confirmation letters individually confirming the transactions with the appellant companies in different years. Thus there is a contradiction between these documents. Actually the learned counsel has challenged t....