TaxTMI 
TaxTMI 
2014 (2) TMI 1159
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....edings of Shri Ashish Soni, it was noticed that some documents seized during the course of search also had link with the assessee. Notice u/s 158BD was issued on 1.9.2002 requiring the assessee to file return for undisclosed income. No return was filed. Page 131 of Annexure A-6 found during the course of search, is a copy of account of M/s Soni & Associates, the proprietorship concern of the assessee, in the ledger of M/s Apoorve Apparels, the proprietorship concern of Shri Ashish Soni. On this page, there was shown opening balance of Rs. 53,529/- and below that the words `fabrication charges' were mentioned with pencil and corresponding entry in the ledger in front of this description was Rs. 4,35,300/-. While replying to the Departmental ....
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....to contend that such a belated initiation and completion of assessment was liable to be quashed. 4. We do not find any force in the submissions of the ld. AR in this regard. Sec. 158BE deals with the `Time limit for completion of block assessment'. Whereas sub-sec. (1) deals with period of limitation in respect of assessment u/s 158BC, sub-sec. (2) deals with the period of limitation for completion of block assessment u/s 158BD. Clause (b) of sub-sec. (2) provides that where search has taken place after 1.1.1997, the assessment u/s 158BD should be `completed' before two years from the end of the month in which the notice under this Chapter was served on such other person. Coming to the facts of the instant case, we find that notice in th....
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....pheld the validity of initiation of action within a period of six years from the end of the relevant assessment year. 6. We are dealing with an assessment getting started u/s 158BD after the assessee had filed return originally declaring income of Rs. 55,300/-. Since such assessment was started pursuant to certain material found in the hands of Shri Ashish Soni indicating that the assessee had not correctly reflected actual receipts from Shri Ashish Soni, such an assessment is fulfilling the requirements of sec. 147. This section provides that where any income chargeable to tax has escaped assessment for any assessment year, such income and also any other income which comes to the notice of the A.O subsequently, may be assessed or reasse....
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....with the finding of certain documents in the course of the person searched u/s 158BC showing the undisclosed income from such documents as relating to the other person. In such circumstances, there is a requirement on the part of the Assessing officer of the person searched to record satisfaction that such income should be assessed in the hands of the other person. The facts before us lie in altogether different realm. We are confronted with a situation in which Shri Ashish Soni availed the services from the assessee for which a consideration of Rs. 4,35,300/- was agreed upon. The said sum was not included by him in his expenditure, for which the Assessing Officer made addition u/s 69C as 'Unexplained expenditure'. Such expenditure of Shri ....
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....m of Rs. 3,80,000/- incurred by the assessee represented the expenditure incurred by the assessee outside the books of account. It was further held by the tribunal that : `The assessee did not explain the source of such expenditure but only pleaded that the entry has been wrongly made by the accountant of the assessee. We do not agree with the submissions of the assessee as made. In our opinion, onus is on the assessee to explain the source of expenditure incurred by him. Since the assessee failed to explain the source of expenditure, therefore, the CIT(A) in our opinion, has correctly sustained the order of the A.O treating this unexplained expenditure to be the income of the assessee to the extent of Rs. 3,80,000/- u/s 69C of the Act". It....