TaxTMI 
TaxTMI 
2011 (11) TMI 513
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome Tax Act. 1961 (hereinafter referred to as the "Act") has been issued for filing the return of income. The assessee admitted the undisclosed income of Rs. 46.92.000/-. According to the Assessing Officer the assessee, Sri. Shyam Sunder Sipani and his authorised representative, Sri. Nagin Khincha, who is also assisting various companies and also shareholders and located at Guwahati. At the time of search, it was found that the companies, which were registered in Guwahati, had bank accounts in Bangalore and there were lot of cash deposits in those company's accounts and thereafter cheques were given to various companies in Bangalore as advance for share capital. A ledger was found which show that the assessee had not accounted for entries....
X X X X Extracts X X X X
X X X X Extracts X X X X
....evenue preferred M.P. No. 34/Bang/2006 which was disposed of by the Tribunal and since two questions regarding the additions pertains to sale of plot and professional receipt was not considered. Miscellaneous Petition was filed by the revenue. The Income Tax Appellate Tribunal by its order dated 14,07.2005 dismissed the petition. Being aggrieved by the same, this appeal is filed by the revenue, which is admitted on 14.09.2007 for consideration of the following substantial questions of law: (1) Whether the Tribunal was right in deleting the addition made by the Assessing Officer in respect of the undisclosed income received from profession detected during search on the ground that professional receipt has already been disclosed by the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....does not indicate income received from the name of the persons as entered in the ledger and estimate could be made by the Assessing Officer and the said estimation would not be based upon the material found during search and the Division Bench of this Court in ITA No. 10/2006 by its order dated 14,09.2011 has held that when the material found during search does not reveal the income, no estimate can be done. The learned counsel further submitted that the letter that was found is pertaining to sale of Plot 7-B, Sarjapur Road, Bangalore, which is a sale transaction in favour of Kamal and no enquire whatsoever was made on the basis of the said letter and the said letter indicates that the assessee has paid Rs. 2,96,000/- to Harshit Entrade Pri....
X X X X Extracts X X X X
X X X X Extracts X X X X
....concurrent finding deleting the amount of Rs. 16,00,000/- as undisclosed income from professional receipt is justified and accordingly the first substantial question of law is answered against the revenue and in favour of the assessee. 7. It is clear from the material that is made available by the learned counsel appearing for the revenue that apart from the letter which is in the letterhead of the assessee addressed to Ram and Kamal pertains to sale of Plot No.7-B, Sarjapnr Road, Bangalore, wherein the description of the property, amount in account and other things has been given and it is also stated that he has already made payment of Rs. 2,96,000/- to Harshit Entrade Private Limited and remaining amount of Rs. 32,000/- has been credite....