TaxTMI 
TaxTMI 
2012 (8) TMI 130
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.... in the name of benamis on the ground that such properties are not in the name of the assessee ?" 2. In the appeal filed by the assessee, the following substantial questions of law have been raised for consideration : "1. Whether in the Income-tax Appellate Tribunal was justified in holding that the assessment under section 158BA is not confined to income disclosed by materials gathered during the search under section 132 and the Income-tax Officer was entitled to make further investigation and collect materials for making further additions to the income determined based on the materials gathered during the search ? 2. Whether in view of the finding of the Tribunal that the appellant and his family members were in receipt of substantial agricultural income, the Tribunal was justified in law in holding that Rs. 49,90,000, Rs. 4,68,335, Rs. 68,000 and Rs. 26,070 represented undisclosed income taxable under the Income-tax Act, 1961 ?" 3. The brief facts leading to the present appeals are as follows : The appeals relate to the block assessment years 1986-87 and 1996-97 up to July 17, 1996. A search under section 132 of the Income-tax Act, 1961....
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.... 34,34,894 (vi) Deposit in the name of P. Krishnan 53,86,498 (vii) Deposit in the name of K. Ramakrishnan 54,93,133 (viii) Deposit in other SB accounts 32,75,252 (ix) Deposit in the name of G. Malliga 12,47,380 (x) Deposit in the name of Siranjeevi 29,392 Total of "C " 2,90,16,433 (D) Immovable properties in the name of other persons (i) House property at Kodaikanal 8,17,280 (ii) Estimated cost of additions 13,83,757 (iii) House at Kumaran Nagar, Trichy 24,34,800 (iv) Land at Manigandam 8,75,150 (v) Land at Vadagam, Kodaikanal 13,21,470 (vi) Plots at Anna Nagar, Trichy 7,21,200 (viii) Property in the name of Poongundran 90,000 (ix) Flat at 9/3 Nehru Nagar, Adayar 6,59,900 Total of "D " 92,08,957 (E) Property in the name of assessee Property at Kuzhamani 11,94,000 Total of "E" 11,94,000 (F) Income from bus operation 60,58,154 Total of "F" 60,58,154 (G) Miscellaneous ....
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....ailable 2,24,600 Agricultural income 1,93,760 5,39,413 42. As we have already deleted the addition on account of salary income, the Assessing Officer need not give a further deduction towards standard deduction and salary available amounting to Rs. 67,369 and Rs.2,24,600 respectively. While considering the sources of income, we have considered the agricultural income and deleted the many additions. Therefore, a further deduction by way of agricultural income to the extent of Rs. 1,93,760 is not called for. 43.The Assessing Officer is, therefore, directed to give only one deduction under section 80L amounting to Rs. 53,694. 44. As a result of these adjustments, the net revised undisclosed income will be Rs. 64,98,721 (Rs. 65,52,405 (-) Rs. 53,684). 45. The Assessing Officer is directed to modify the block assessment on the above lines. In the result, the block assessment appeal is partly allowed. Order accordingly." The above order is put in issue by the Revenue in T. C. (A) No. 686 of 2005 and by the assessee in T. C. (A) No. 2 of 2009. 5. We have heard elaborately Mr. K. Ramasamy, learned senior s....
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....e order of the Tribunal in confirming certain additions, which have not been declared by the assessee, it is contended that the Tribunal had not properly appreciated though relevant materials were placed. 8. We have carefully considered the rival submissions. Point No. 1 9. As it is a block assessment, as against the order of the Assessing Officer, the assessee had the benefit of filing appeal only before the Tribunal, as there was no provision for appeal before the Commissioner of Income-tax (Appeals) at the relevant point of time. In these circumstances, the provision relating to the Commissioner of Income-tax (Appeals), viz., rule 46A of the Income-tax Rules, 1962 (for brevity" the IT Rules") cannot be pressed into service. Rule 29 of the Income-tax (Appellate Tribunal) Rules, 1963, (for brevity "the ITAT Rules"), of course, contemplates a provision that if the Tribunal requires any document to be produced or any witness to be examined or any affidavit to be filed to enable it to pass orders or for any other substantial cause, or, if the income-tax authorities have decided the case without giving sufficient opportunity to the assessee to adduce evid....
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....ection raised by the Revenue at the time when the application was filed and the Revenue, in fact, had allowed the Tribunal to entertain such application. In this context, we may also refer to the observation of the Tribunal that the Revenue did not contradict any of the averments made by the assessee in the petition seeking for production of additional evidence. The Tribunal also observed that the Revenue had not questioned the veracity of the documents and the particulars filed by the assessee. 13. In view of the above, the first submission of the learned senior standing counsel appearing for the Revenue cannot be accepted and the same is rejected. Point No. 2 14. As far as the second contention is concerned, the details of the documents are referable. These documents are the copies of adungal records, certificates issued by the Village Administrative Officers, lease deed copies and the affidavits of 13 persons stating that they are the holders of agricultural lands and they had sufficient income to commensurate the agri- cultural income which was available for their disposal. It is also pertinent to note that the above 13 persons filed their respecti....
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....ssessing Officer, who will be in a better position to verify the genuineness of those documents and accordingly, he may accept or may not accept the case of the assessee. In the event certain doubts are entertained on the basis of the documents produced as additional evidence, it would be only proper for the Tribunal to remit the matter. 17. The Tribunal had also taken into consideration the statement of one Manickam, which was notarised on May 6, 1997, wherein he has stated that he has given on lease the agricultural lands in various survey numbers to the assessee by name K. P. Krishnan and is cultivating plantain, paddy, toor dhall, cotton, gingelly, etc., for the period from 1980 and 1991. The questions as to whether the lands in these survey numbers belong to the assessee or not and whether the assessee had entered into lease agreement with the said Manickam or not are all matters to be considered in detail to find out the genuineness of those documents. All additional evidence/ documents are more or less on the same lines. In this regard, we have gone through the order of the Tribunal and the Tribunal had accepted almost all the documents without there being any detailed co....
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....e house property at Fernhill, Kodaikanal 22,01,037 22,01,037 20 Investment in others name in the house property at Kumaran Nagar, Trichy 24,34,800 24,34,800 21 Investment in others name in the land at Manikandam Panchayat 8,75,150 8,75,150 22 Investment in others name in the plots at Anna Nagar, Trichy 7,21,200 7,21,200 23 Investment in others name in land at Vadagaunji village 13,21,240 13,21,240 24 Investment in others name in the flat at Nehru Nagar, Adyar 9,05,400 9,05,400 25 Investment in improvement of the residential house at Kulumani village by the assessee 11,94,000 11,94,000 26 Investment in others name in flat at Nehru Nagar, Adyar 6,59,900 6,59,900 27 Investment in the name of others on the agricultural land in Wuraiyur 90,000 90,000 28 Investment in the name of Janshi Rani in Bus No. 45E 7000 and the operational income 10,72,480 10,72,480 29 Investment in the name of A. G. Ayyavoo in Bus No. TN 45 X 3565 and the operational income 8,66,308 8,66,308 30 Investment in the name of P. Thangiah in Bus No. TN 45 E 1582 and the operational income ....