TaxTMI 
TaxTMI 
2014 (9) TMI 390
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....bunal) in I.T.(SS)A No.4/viz/1997. 1. Whether in a block assessment items which were already shown in regular I.T. Returns and in the accounts accompanying the I.T. Returns and which are processed in regular assessments could be included as undisclosed income when there was no material found in the course of search in relation to the said items. 2. Whether the assessing officer holds the share holder to be benami of some other share holder, is the value of the shares held by such benami share holder liable to be included as income of the company itself when the real share holder is someone else. 3. Whether in a block assessment, on the basis of the statement recorded from one share holder who is alleged to be a benami shareholder c....
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....n 158BC of the Act, disclosing the undisclosed income at Rs. 20,000/-. The block assessment was completed on an undisclosed income of Rs. 4,49,16,630/-. Aggrieved by the assessment order dated 30.09.1997, the appellant filed Appeal under Section 253(1)(B) of the Act before the Income Tax Appellate Tribunal challenging the various additions made. By an order dated 08.02.2000, the Tribunal deleted some of the additions and while confirming some. Aggrieved by the said order of the Tribunal, the present appeal is filed. 3. However, on perusal of the record and on hearing the learned counsel for both the parties, the following two questions of law would arise for consideration and would address the controversy in issue: a) Whether the amou....
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....re reflected in the returns and the material was available for the Income Tax Officer, who made the assessments for the respective years. He further submits that the procedure adopted to ascertain the veracity or otherwise of the entries in the books of accounts in the earlier years is contrary to the prescribed procedure for making the assessments for the block period under Chapter-XIVB of the Act. He relied upon the judgments of the High Court of Bombay reported in Commissioner of Income Tax vs. Vinod Danchand Ghodawant 247 ITR 448 and High Court of Andhra Pradesh reported in Commissioner of Income-Tax v. B. Satyanarayana (2013) 356 ITR 323 (A.P). 6) Learned counsel submits that assuming but without conceding, that the appellant was no....
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.... discussed and interpreted by the High Court of Bombay in the case of Commissioner of Income Tax (1 supra) and by this High Court in Commissioner of Income-Tax (2 supra). It was held that only such adverse material, as was unearthed during the search, alone can be the basis for the purpose of block assessment, and not the one, that disclosed in the books of accounts in the earlier assessment years. It is settled by catena of judgments that there is no duty cast on the assessee to draw specific attention to each and every item of the books of accounts and it is for the Income Tax Officer to draw conclusions, based on the record and material placed before him and elicit clarifications in the event of doubt. Reference in this context may be ma....
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....ere was no satisfactory explanation forthcoming with respect to the source for effecting the said payments. However, the explanation given for the amount of Rs. 3,00,000/- that it was received from the individuals, was not considered, on the ground that there is no material to support such claim. 13. The plea of the appellant about Rs. 65,000/- is that once the Assessing Officer disallowed the expenditure, the same cannot be added for the purpose of assessment. Likewise, regarding the amount of Rs. 1,80,413/- his explanation is that 6%, over and above the interest which has been recorded in the books of account, has been paid in cash, but it is not reflected in the books. His contention is that when an addition is being made treating the....