2016 (2) TMI 833

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....ction' when it had already given a finding that an amount of Rs. 39,20,400 was invested by the appellant outside its books? 2. Brief facts are as under. 2.1 Appellant, assessee is a company registered under the Companies Act and is engaged in the business of building construction. The assessee was subjected to search under Section 132 of the Income Tax Act, 1961 ('the Act', for short) in December, 1996. During such search, Shri D.V.Jethani, one of the Directors of the company gave a statement on 9.1.1997 and admitted unaccounted receipt of Rs. 39.20 lacs (rounded off). During the course of block assessment proceedings, the Assessing Officer added the entire sum of Rs. 39.20 lacs by way of income of the assessee. The Assess....

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....wever, we may briefly record that it was during the statement recorded on 9.1.1997 of Shri D.V.Jethani, one of the directors of the Company that he had made the disclosure of having received sum of Rs. 39.20 lacs which was not accounted for. Such a statement was never retracted all throughout during the assessment proceedings. It was on this basis therefore the Assessing Officer made addition of Rs. 39.20 lacs which the Tribunal upheld. 5. Having made such addition, the Assessing Officer was still not satisfied about the correct cost of construction having been reflected by the assessee in the books, he, therefore, called for the DVO's report. In the order of assessment, he estimated the cost of construction at Rs. 2.32 crores (round....