2018 (7) TMI 588

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....come. 3. Briefly stated, the facts of the case are that a search operation was carried out u/s 132 of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] on 31.01.2003 at the residential premises of Shri Jatinder Singh Sharma, Smt. Manju Sharma and M/s Kamdhenu Restaurant. Certain incriminating documents relating to rental income and unexplained cash were found and seized on the strength of which the Assessing Officer framed assessment.  The matter travelled upto the Tribunal and the Tribunal vide order dated 10.01.2011 in ITA No. 55/DEL/2009 restored the assessment to the file of the Assessing Officer to reframe the assessment. 4. Pursuant to the directions of the Tribunal, fresh proceedings were starte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s computation statement, enclosed with block return, has admitted that rental income as on 1.9.2001 to 30.09.2001 was @ 12000 p.m. which, upon revision, subsequently resulted in a substantial hike to Rs. 50,000/- p.m. 8. On the basis of rental income shown by the assessee, the Assessing Officer presumed that in the earlier years of the block period, the assessee must have received rental income and accordingly computed the total undisclosed income of the block period as under: Previous Year (Chronologically) Asstt. Year Total income For the year Returned Income Undisclosed income 1st 1997-98 2,00,800 Nil 2,00,800 2nd. 1998-99. 2,10,800 Nil 2,10,800 3m 1999-00 2,20,800 Nil 2,20,800 4th 2000-01 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ars also. The law has been clearly laid down by Hon'ble Supreme Court in the case of Hotel Blue Moon (supra) and Hon'ble Jurisdictional High Court in the case of Ashok Khetrapal (supra). Therefore, the AO is hereby directed to re-calculate the income of the appellant on the basis of documents found and seized during the course of search, without any estimation or extrapolation, either in the case of rental income or in the case of Chadhawa income." 11. Aggrieved by this, the Revenue is before us. 12. The ld. DR strongly supported the findings of the Assessing Officer. It was the say of the ld. DR that rent received for the first  five assessment years in the block period has been estimated at Rs. 12,000/- p.m. The ld. DR strongly....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ow that the temple premises was rented out to Shri Dalip Gupta, Satish Chander Gupta and later on to Shri Adarsh Gupta and Smt. Kanchan Gupta. Rent shown in the rent agreement with  these persons was offered by the assessee-HUF in the return of income. It is also not in dispute that the assessee was entitled for chadawa and his turn comes once in 18 years and that year was assessment year 2002-03. 15. On the basis of these details found at the time of search, the Assessing Officer had estimated the rental income and chadawa  income for earlier assessment years where the assessee did not show any such income. We find that in so far as chadawa income is concerned, estimation made by the Assessing Officer is without any basis and wi....