2008 (8) TMI 204

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..... JUDGMENT The judgment of the court was delivered by SURJTT SINGH J. - This appeal by the assessee is directed against the order dated September 26, 1997, of the Assessing Officer and order dated September 23, 1999, of the Income-tax Appellate Tribunal, whereby on search of the premises of the assessee undisclosed income to the tune of Rs.8,98,550 having been found, tax liability at the ....

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....parte. The appellant/assessee appeared along with a chartered accountant. The Assessing Officer, based on the reply to the questionnaire submitted by the assessee and other records and proceedings of search and seizure, held that the appellant/assessee had the following items of undisclosed income:     Rs. (i) Purchase and renovation of a hotel building known as Kohinoor H....

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....sessing Officer and has been reduced in appeal by the Appellate Tribunal to Rs.75,000. It is alleged that the addition of Rs.75,000 to the undisclosed income of the appellant/assessee is not legally sustainable and is in contravention of the provisions of sections 158BB and 158BC of the Income-tax Act, 1961. 4. The appeal was admitted on the following substantial question of law, vide order dat....

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....functional throughout the financial year 1995-96. The assessee claimed that there were only seven rentable rooms in the hotel and that the tariff, as fixed by the Tourism Department, was Rs. 125 per room. He stated that the hotel being away from motorable road, occupancy was negligible. The appellant/assessee did not produce any material on record indicating that occupancy was negligible. In fact,....