2001 (6) TMI 7

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.... petitioner under section 132 of the Income-tax Act, 1961. During the search the Department has seized various documents, which includes identifying as GNP 1, 2 and 3 and GNP 15. During the course of the investigation, the assessee has admitted that the transaction in GNP 1, 2 and 3 and also GNP 15 were not there but those were the entries of undisclosed income. But in the statement he clarified that the amount referred to in the entries in GNP 15 which was up to April 25, 1985, has been shown as cash credit in GNP 1, 2 and 3 and on the basis of GNP 1, 2 and 3 the peak credit was calculated at Rs.1,08,13,090. Therefore, the entries in GNP 15 showing the sum of Rs.41,54,000 was part of the peak credit. That was not accepted by the income-tax....

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....the case of Kunhayammed [2000] 245 ITR 360 (SC). While concluding the issue of merger, their Lordships have observed at page 382 as under: "(ii) The jurisdiction conferred by article 136 of the Constitution is divisible into two stages. The first stage is up to the disposal of the prayer for special leave to file an appeal. The second stage commences if and when the leave to appeal is granted and the special leave petition is converted into an appeal. (iii) The doctrine of merger is not a doctrine of universal or unlimited application. It will depend on the nature of jurisdiction exercised by the superior forum and the content or subject-matter of challenge laid or capable of being laid shall be determinative of the applicability of m....

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....nd in the newspaper in GNP 15 was reintroduced as cash credit in GNP 1, 2 and 3, according to the Tribunal, the assessee has not established from the evidence that the amount found in GNP 15 has been introduced as cash credit found in GNP 1, 2 and 3. There is no dispute that the amount shown in GNP 15 pertains prior to April 25, 1985, and the cash credits found in GNP 1, 2 and 3 relates to the subsequent period. Therefore, prima facie, the assessee has a case that the amount of Rs.41,54,000 is found in GNP 15 that could have been introduced as cash credits in GNP 1, 2 and 3 which has been introduced as cash credits during the period from April 29, 1995 to August 4, 1995. The Tribunal has taken the view that no evidence has been laid to r....