2013 (6) TMI 308

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....me Tax Act, 1961 (in short "the Act") against the order dated 16.8.2004 passed by the Income Tax Appellate Tribunal, Delhi Bench 'A', New Delhi (hereinafter referred to as "the Tribunal") for the block assessment period 1.4.1985 to 21.7.1995. 3. The appeal was admitted by this Court vide order dated 22.8.2006 for determination of the following substantial questions of law:- "i) Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in deleting the addition of Rs.1,37,49,079/- as unexplained investment in lottery tickets u/s 69 of I.T. Act, 1961? ii) Whether on the facts and circumstances of the case, the Hon'ble Income Tax Appellate Tribunal was justified in deleting the incentiv....

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....f lottery tickets? 7. Taking up issue No. (i), it may be noticed that the Tribunal had relied upon the findings in the report of auditors which was found to be in accordance with the provisions of the Act. It was further observed that during the course of search, no material was found indicating any payment in cash outside the books of account regarding the purchase of lottery tickets. The Tribunal while deleting the addition on this count, in para 15 has recorded as under:- "15. The case of assessee is that in similar manner, the PWT received from his customers are returned to the main person from whom such tickets were purchased in lieu of purchase price. Only the net amount is paid either by cheque/draft or by cash which is fully r....

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....be apposite to refer to the findings recorded by the Tribunal. The Tribunal had observed that the authorized officer had relied upon the instance of I.C. Khurana and on that basis made the addition whereas there was no material found during the course of search which could indicate that there was undisclosed income of the assessee in the form of incentives on any turn over which might have been received by him. The relevant findings in paras 12 and 13 of the impugned order read thus:- "12. Rival submissions have been considered carefully in the light of materials placed before us. It is the settled legal position in view of decisions of various benches of the Tribunal and High Courts that assessment of undisclosed income under Chapter XI....