2003 (11) TMI 27

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....lant, the impugned order involves the following substantial questions of law: "(1) Whether, on the facts and circumstances of the case the Income-tax Appellate Tribunal is correct in assessing the amount of Rs. 14,88,784 under section 158BC of the Income-tax Act, 1961, without invoking the provisions of section 158BD of the Income-tax Act, 1961, because 'annexure A11' was not found in the search at the premises of the petitioner and the petitioner has disowned this paper from the very beginning? (2) Whether, on the facts and circumstances of the case, the assessment order is invalid it being under section 158BC instead of section 158BD which is a separate and independent charging section? (3) Whether, on the facts and circumstances....

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....During the course of the assessment proceedings, the assessee was asked to explain the entries regarding the cash transactions; reflected in the upper portion of the said document. The assessee explained the said entries, inter alia, stating that the paper showing entries of Rs. 1,75,000, Rs. 10,62,000 and others had no relation with the assessee; the assessee who had in his employment an accountant was learning computer operations and it is by chance that during practice he filled certain figures to test his ability and the print taken out by him was seized by the Department; and these entries do not pertain to any business transactions which have nowhere been signed or confirmed by the assessee. However, subsequently, resiling from the....

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....ar as the assessee was concerned and, therefore, the assessment for the block period is null and void. It is, thus, urged that the order of the Tribunal involves substantial questions of law. On a plain reading of the relevant provisions contained in Chapter XIV-B of the Act, inserted by the Finance Act, 1995, we do not find any substance in the contention urged on behalf of the assessee. Chapter XIV-B lays down a special procedure for assessment of cases where a search is conducted under section 132 of the Act or books of account, other documents, etc., are requisitioned under section 132A of the Act after June 30, 1995. Section 158B is a definition section and gives definitions of the expressions "block period" and "undisclosed inco....

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....bling provision for bringing to tax any undisclosed income belonging to any person, other than the person with respect to whom search was conducted under section 132. In the present case, while rejecting the argument that the provisions of section 158BC of the Act were not applicable, the Tribunal has observed that it was never the case of the assessee that the document in question (annexure A 11) was not recovered from its business premises or that it did not belong to it or that the entries regarding expenditure aggregating to Rs. 14,88,754 were not made by its employee; vide letter dated November 7, 1996 the assessee had categorically accepted that the entries in question were made by its accountant, though for some other purpose; aga....