2015 (11) TMI 387

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....d in this appeal : Question No. 1 Whether the Tribunal was justified in upholding the inclusion of Rs. 1,64,158 being income from 'seconds' for the period April 1, 2002, to September 12, 2002, in block assessment when the said income did not fall within the definition of undisclosed income under section 158BA of the Income-tax Act 1961 ? Question No. 2 Whether the transaction of 'seconds' having been recorded in the normal course in the ledger maintained, the income therefrom for period April 1, 2002, to September 12, 2002, was excludible from the block assessment in the light of the provisions of section 158BA ? Question No. 3 Whether the investment of Rs. 2.5 lakhs in a firm Kaveri Bar and Restaurant cons....

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....e the Income-tax Appellate Tribunal, Bangalore, which was rejected and the said order is assailed in this appeal. 3. The learned counsel, Sri S. Parthasarthy, appearing for the appellant argued that Rs. 1,64,158 was declared in the regular return filed by the assessee for the assessment year 2003-04 as it represented the income earned between April 1, 2002, to September 12, 2002. The learned counsel placing reliance on section 158BA(3) of the Act submitted that if any part of the income relates to an assessment year for which the previous year has not ended or the date of filing the return of income under section 139(1) for any previous year has not been expired, and if such income are recorded in the books of account or other documents,....

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.... 1, 2002, was not properly explained and these are all the issues relating to the facts which have been considered by the Tribunal and rightly held to be unexplained investment of the assessee-firm. 6. After hearing the parties and perusing the material on record, we have noticed that as per the submissions made by the learned counsel for the appellant, the learned counsel admits that the appellant is maintaining two sets of accounts which is not permissible in law merely because subsequent to the search held on September 12, 2002, the assessee has filed the returns for the assessment year 2003-04 disclosing the amount of Rs. 1,64,158 held to be undisclosed income, would not carry any conviction. The reliance placed on by the learned cou....