2014 (12) TMI 1012

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....ads as follows: "(i) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 17,64,527/- made by AO on account of undisclosed income determined on the basis of incriminating documents found in the search. (ii) On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in deleting the addition of Rs. 17,64,527/- by accepting fresh evidence in violation of Rule 46A". 2.1. Grounds raised in the assessee's cross objection reads as under: "(i). That on the facts of the case and under the law, the Ld. CIT(A) has erred in not holding that the ld. AO had wrongly assumed jurisdiction to initiate proceedings u/s 158BD of the IT Act 1961 in the case of the assessee. (i....

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.... NIL NIL NIL 2003-04 NIL NIL NIL 126315 554752 681067   ii) Addition made on account of peak credit in the Bank Account of Pyare Lal Vijay Kumar and Pawan Industrries A.Y. PYARE LAL VIJAY KUMAR PAWAN INDUSTRIES TOTAL 1997-98 429862 [As on 09.11.1996 in Bank of Rajasthan Ltd.] NIL 429862 1998-99 NIL 653598 [As on 07.05.1997 in Union Bank of India] 653598 1999-00 NIL NIL NIL 2000-01  NIL NIL NIL 2001-02 NIL NIL NIL 2002-03 NIL NIL NIL 2003-04 NIL NIL NIL   429862 653598 1083460 4. Aggrieved by the additions made in the block assessment, assessee preferred an appeal before the First Appellate Authority challenging the initiation of block assessment u/s158....

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....d Representative reiterated the submission made before the Income Tax Authority. 7. We have heard rival submissions and perused the material on record. The total undisclosed income of Rs. 17,64,527/- computed by the AO, comprises of the following two additions (both proprietary concern of the assessee) : i) N.P. at 1% of the total purchases from M/s Gian Chand Ramji Dass Group Rs. 6,81,067/- ii) Addition of peak credit in Bank account Rs.10,83,460/- Total Rs.17,64,527/- 7.1 We shall be deal with the above two additions as under: i) Addition of Rs. 6,81,067/- In the course of search proceeding in the premises of M/s Gian Chand Ramji Dass documents pertaining to M/s Pyare Lal Vikay Kumar and M/s Pawan Industries ....

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....e details called for in the course of assessment proceeding. The assessee ought to have furnished necessary material to show that the purchases from M/s Gian Chand Ramji Dass Group were duly reflected in the regular book account maintained by the proprietary concerns. For the aforesaid reasons, we are of the opinion that CIT(A) is not justified in deleting the addition of Rs. 6,81,067/-. Therefore, in the interest of justice and equity, the issue of addition of Rs. 6,81,067/-, is restored to AO for fresh consideration. The assessee shall be afforded reasonable opportunity of being heard before assessment is reframed. ii) Addition of Rs. 10,83,460/- 7.2 The peak credits in two bank accounts were added by the AO as undisclosed income. T....