2018 (7) TMI 588

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.... Rs. 18,03,200/- on account of undisclosed income. 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 directio....

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....onation from general public]. 7. The assessee, in his 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 2,0....

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....income of the appellant for the whole block period by extrapolation. Such powers of extrapolation of income to earlier years is not available to the AO if no seized material, documents or books of accounts have been found during the course of search, indicating that the appellant had earned unaccounted income in similar fashion in earlier years 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 ....

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....l property and the assessee -HUF became pujari with other family members. There is also no dispute that Shri J.S. Sharma with  his other family members was residing in the temple premises. It is also not in dispute that during the search operation, certain rent agreements were found and on the basis of which the Assessing Officer came to the know 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 20....