AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (1) TMI 660
X X X X Extracts X X X X
X X X X Extracts X X X X
....Notice under section 158BC of the Act was issued to the assessee on 20.11.1998 calling upon him to file his returns within a period of 45 days. The assessee filed the returns for the block period disclosing undisclosed income of Rs.6,51,321/-. The Assessing Officer completed the assessment under section 158BC and had assessed the undisclosed income at Rs.40,75,868/-, vide assessment order dated 26.10.1999. Aggrieved by the said order of assessment, the assessee preferred an appeal before the Commissioner(Appeals), who allowed the appeal in part, vide order dated 15.10.2001. Not satisfied with the order of the CIT (Appeals), the assessee preferred second appeal to the Tribunal claiming that the CIT(Appeals) was not justified in sustaining an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ould not remain fixed for all the four years. On the basis of the document no.6 seized during the search, the Assessing Officer made addition of Rs.4,48,600/-. 4. CIT (Appeals) accepted the contention of the assessee that as per the lease agreement dated 17.4.1997, rent was payable @ Rs.11,000/- per month from 1.4.1997 to 31.3.1998 for the first-floor and based on the document, the Assessing Officer should have allowed a further sum of Rs.72,000/-. CIT(Appeals) held that the total deduction allowable was not Rs.2,88,000/- but Rs.3,60,000/- and the total disallowable amount would come to Rs.3,76,600/- and granted relief of Rs.72,000/- to the assessee. 5. In appeal before the Tribunal, on perusal of the document no.6, it was noticed that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ck period and deleted the addition of Rs.1,50,000/-. The Tribunal confirmed the order of CIT(Appeals). 8. Misc. Payments of Rs.2,91,000/- Addition of Rs.2,91,000/- made on the basis of diary entries and as per the seized documents, payments were made for Mandir, Hindi Teacher, Bhuaji, Puja, Fruit, Rajasthan, Masoori etc. CIT(Appeals) and the Tribunal confirmed the addition made by the Assessing Officer. 9. Other Payments of Rs.5,80,000/- Payments made as per seized document no.2 to MP Cells, HP Cells, VNS,HPS, P.P.Pali, addition of Rs.5,80,000/- was made and the said addition was confirmed by the CIT(Appeals) and also by the Tribunal. 10. Being aggrieved by the order of the Tribunal, the assessee has preferred this appeal, raising the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntemplated for search and seizure and as per section 158B(b) "undisclosed income" of the block period is inclusively defined and loose-sheets recovered during seizure ought to be taken as "other documents" and they cannot be merely termed as loose-sheets. Learned counsel further submitted that under the provision of sub-section (4A) of section 132, law raises presumption concerning the correctness of the documents (seized) and the said presumption is rebuttal and the assessee has not adduced any evidence rebutting the presumption raised under section 132(4A). 13. We have carefully considered the submissions advanced by the counsel for the parties. 14. Section 158B is a definition section explaining the basic concept of block period and "u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ndisclosed income but also to seize money, bullion etc. representing the undisclosed income and to retain them for the purposes of realization of taxes, penalties etc. 17. Section 132(4A) enables an assessing authority to raise a rebuttable presumption. Section 132(4A) reads as follows:- "132(4A) Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search, it may be presumed - (i) that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person; (ii) that the contents of such books of account and other documents are true; and (iii) th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t entered into between the assessee and the landlord concerning the first-floor of the premises at Safdarjang Enclave, New Delhi, was in existence for the said period. The documents identified as document no.6 contained entries regarding higher rent paid for the said premises for various periods. Based on the entries, the Assessing Officer and the CIT(Appeals) arrived at the concurrent findings of fact that higher rent was paid for the rented premises. The Assessing Officer observed that the rented premises was in the heart of the city of New Delhi at Safdarjang Enclave and the rent is not likely to be Rs.6000/- per month and that to be it would not remain fixed for all the four years. 20. Learned Senior Counsel appearing for the assessee,....