2023 (10) TMI 1580

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....n the circumstances of the case the fact regarding investment in share capital for Rs. 50,000/- is not the part of seized material as such can not be made addition under block assessment in view of the judgment delivered by Hon'ble Madras High Court in 308 ITR 124? (ii) Whether in the fact and in the circumstances of the case the investment made for Rs. 50,000/- in the name of two sons of the assessee without verifying the fact that the said certificate of investment was not part of seized material as such can not be assessed under block assessment rather could be assessed under regular assessment by charging 30% tax not 60% tax? (iii) Whether in the facts and circumstances of the case the addition made in the account ....

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....nged in the appeal. The additions made were challenged in first appeal before the first Appellate Authority, who modified some, from which order both the revenue and the assessee filed appeals before the Tribunal. The common order from which the present appeal arise rejected both the appeals of the assessee and the revenue. The present appeal raises questions of law from the rejection of the grounds raised by the appellant before the Tribunal, touching upon the factual aspects of the three additions made. 3. In the reply filed on 07.08.2000, there was no categoric statement of business income derived from supply of building materials but the assessee admitted to the floating of a construction company, which was incorporated in the year 1....

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....wo other investments made in the name of his sons of Rs. 25,000/- each and in the name of the HUF a further mount of Rs. 50,000/-; which were added as undisclosed income in the block period. Likewise, the son of the assessee was found to be studying in Scindia School, Gwalior and as per the documents seized from the residence, expenses were detected, which along with the documents requisitioned from the school, were related to the payment towards school fees. Actual payment of fees requisitioned from the school related to the tuition fees and hostel charges. The source of expenditure pointed out by the petitioner was from the HUF Rs. 75,000/- in 1996-97, a gift received of Rs. 55,000/- in the year 1997-98 and the income of his wife and hims....

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....itions made in the appeal of the assessee. It was found that with respect to the investment made in the company, in the name of the sons of the assessee there was no satisfactory explanation nor a source pointed out. It was claimed before the Tribunal that the said expenditure was disclosed in the balance-sheet of the company and that it was in the knowledge of the Assessing Officer even prior to the search. The argument put forth was that the addition under block assessment can only be made on the basis of the seized material. The Tribunal found that the assessee failed to establish any source of income, for both the children. 10. The Tribunal failed to consider the question of law specifically raised but however what falls for interpre....