2008 (3) TMI 1

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.... by M/s.  Televista Electronics Limited was found. It appears that the books of accounts of the Assessee indicated payment of an amount of Rs.12,50,000/- towards commission. 3.         According to the Assessing Officer, post search inquiries revealed that the bill was bogus and in fact no commission was paid to M/s. Televista Electronics Limited. On this basis, the Assessing Officer added an amount of Rs.12,50,000/- to the income of the Assessee as undisclosed income. 4.         The view taken by the Assessing Officer was upheld by the Commissioner of Income Tax (Appeals). However, the Tribunal has deleted the addition in the second appeal filed by t....

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....d on any entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act, or any expense, deduction or allowance claimed under this Act which is found to be false. 8.         Learned counsel for the Revenue has relied on the last few words namely "or any expense, deduction or allowance claimed under this Act which is found to be false." She says that these words were added by an amendment with retrospective effect from 1^st July, 1995 by virtue of the Finance Act, 2002. 9.         On the other hand, learned counsel for the Assessee....

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.... of sale of property that had taken place for which M/s. Televista Electronics Limited had been paid a commission. In so far as the falsity of the expense or deduction or allowance is concerned, that must be necessarily be relatable to the document or transaction. This is clear from Section 158BB(1) of the Act which specifically requires that the material or information must be relatable to such evidence. Therefore, both requirements are necessary, namely, material showing that the amount has not been or would not have been disclosed and that the expense, deduction or allowance should be false on the basis of the unearthed evidence. 11.       In so far as the present case is concerned, the very first require....

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....;      It cannot be said that the addition was not based on any seized material. The addition has been made on the basis of seized pages 1-6 of Annexure A-2, Party HR-10 as well as post search investigation, which is permissible under Section 158BB of the Income Tax Act; 5.         The replies submitted by Shri Shankar Kaul, Upendra Kaul and Anil Bhan conclusively establish the fact that no intermediary was involved in the sale of flats at Shalimar Residency. This is further supported by the fact that a single bill has been raised against commission received on account of sale of flats to different persons. All the flats could not possibly have been sold on the same date." ....