TaxTMI 
TaxTMI 
2007 (2) TMI 154
X X X X Extracts X X X X
X X X X Extracts X X X X
....ai Mahadeswara Auto Agency. On November12 1999, the Department conducted search and seizure operation under section 132 of the Income-tax Act, 1961, at the residential and business premises of the appellant. Documents were recovered. Thereafter, the appellant was asked to file his return for the block period 1990 to 1999. The appellant declared a total undisclosed income of Rs. 2,01,091. The Assessing Officer concluded the block assessment dated November 28, 2001. He concluded a sum of Rs. 1,02,28,563 as undisclosed income. He imposed a tax of Rs. 61,37,137. Interest was imposed under section 158BC. Aggrieved by the same, an appeal was filed before the Commissioner of Income-tax (Appeals). The Commissioner rejected the appeal in terms of an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....here are no mistakes in their order liable for rectification ? (d) Whether the charging of interest under section 158BF is in order? 3 We have heard Sri Shankar, learned counsel appearing for the appellant. He took us through to the material on record to contend that the Tribunal is wrong in the case on hand. He would say that without there being any evidence, an adverse order has been passed against the appellant. He therefore says that the orders impugned are perverse as understood in law. In so far as the merits of the matter is concerned, he says that the Tribunal is wrong with regard to an addition of Rs. 44,83,250 termed as hand loan from various parties. He also finds fault with an addition of Rs. 23,25,000 in the name of one K....
X X X X Extracts X X X X
X X X X Extracts X X X X
....repaid for different periods, work-in-progress details, dishonoured cheques, some chit details, personal expenditure and receipts, etc. After noticing the seized material, the assessee was asked to give his explanation as to why the gross receipts of oil sale should be treated as undisclosed receipts. The assessee produced some of the purchase bills. Noticing the same, the Assessing Officer pro posed to estimate 40 per cent. profit upon undisclosed oil sale, which has been worked out to Rs.9,85,958. The Assessing Officer also noticed that the assessee withdraws an average amount from the collection of the petrol bunk and deposits the same into the private chit fund. The amount works out to Rs. 2,72,050. He was provided an opportunity in the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... passed an adverse order. On appeal, the Appellate Commissioner dismissed the appeal. A second appeal was filed before the Tribunal. The Tribunal notices the material facts and thereafter the Tribunal adopted the profit percentage at 25 per cent. instead of 40 per cent. in so far as income from undisclosed oil sale of Rs. 9,85,958 is concerned. The Tribunal also confirmed undisclosed income from chits of Rs. 2,72,050 and undisclosed income of Rs. 61,000 on account of air travels in the matter. In so far as the election expenses is concerned, the Tribunal accepted the case of the assessee by holding that the assessee might be functionary in the political party and it is quite common that he could have managed certain receipts and payments on....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the dates. The assessee's explanation was that of cash loans. However, the assessee was unable to satisfy all the three fact finding authorities with regard to hand loan transactions in the case on hand. Loans were supposed to have taken place in the year 1977. The same is not repaid even till 2001. Search has taken place in the year 1999. Some of the letters on which reliance was placed are of the year 2001. A reading of the material on record as a whole would indicate that all the three fact finding authorities have chosen to hold against the assessee on facts. We are not inclined to interfere with an order based on facts in the case on hand. In terms of the provisions of law the Tribunal rightly, in our view, has chosen to reject the m....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of interest. The same has been followed by the Department. We, therefore, do not find any acceptable grounds with regard to reconsideration of this aspect of the matter. 7 Before concluding, we are disturbed to note the findings of the Tribunal with regard to election expenses in para 16 of the order. The assessing authority in his order dated November 28, 2000, has ruled that the assessee has stated "that these entries are related to 1998 election expenses and these funds were utilised through me for the purpose of hiring vehicle for Janta Dal party during that time." He, therefore, ruled that he did not accept the explanation. He ruled the difference between the receipts and payments which works out to Rs. 7,33,558 and the same was tr....