2015 (8) TMI 508

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....ls filed by the assessee and dismissed the appeals of the Revenue. 3. The appeal was admitted on the following substantial questions of law : "1. Whether the statement recorded under section 132(4) of the Income-tax Act can be ignored or overlooked, which is free from any ambiguity or extraneous circumstances ? 2. Whether the normal course of assessment under section 143(3) cannot be adopted and, accordingly, estimate of income of the entire period on the basis of bills/vouchers found for a few days or part period can be made as the assessment in this case relates to pre-block period assessment ? 3. Whether the Income-tax Appellate Tribunal was justified in approving finding of the Commissioner of Income-tax (A....

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.... Filed by the assessee Assessed Finally upheld by the CIT(A) 1990-91 1,52,690 2,74,750 1,75,000 1989-90 55,430 2,67,168 1,76,000 1988-89 14,020 1,84,100 87,500 1987-88 6,400 1,66,250 70,000   2,28,540 8,92,268 5,08,500   5. The Commissioner of Income-tax (Appeals) held that the grievance of the appellant was that the additions made were totally unjust, in regard to the recorded transactions. The appellant had maintained different details, by way of books of account, bills, etc. The decline in the gross profit was due to the fluctuation in the market, and thus, there was no justification in observing that trading addition was required, relating to books of a....

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....its interrogation of persons not only in relation to the books of account, etc., found as a result of the search but also on any other matter, relevant for any proceeding under the Act. 8. In the present case, the Tribunal held that the assessments, on estimation, were not permissible, on the face of the material, which was found during the search, and statement made by the assessee. The assessing authority went beyond the material and the statement in making assessment on a higher side, on the basis of estimation. 9. Learned counsel appearing for the assessee relied upon the statement made by the assessee, from which we find that, at the time of recording statement making surrender, the assessee had stated that such surrendered amoun....

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...., at that time to add the entire surrendered amount to his income. He had clearly mentioned that the amount surrendered, as reflected in the red and blue diaries, should be accounted, subject to the verification of credits entered in the diaries, and thereby, reducing the amount of surrender, to that extent. 12. We do not find any error in the findings of the Tribunal, that the statements made during search, must be correlated with the records, which are found, and if there is any ambiguity, the explanation given by the assessee should be taken into consideration, before making the assessment. The legal position with regard to the undisclosed income from the diaries, does not need any elaboration, however, if the material found during th....