Ranbir Singh Bagga, Hyderabad v. DCIT, Hyderabad

ITSSA 179/HYD/2005 | misc
Pronouncement Date: 13-01-2011 | Result: Dismissed

Appeal Details

RSA Number 17922516 RSA 2005
Assessee PAN ACXPB4130B
Bench Hyderabad
Appeal Number ITSSA 179/HYD/2005
Duration Of Justice 5 year(s) 1 month(s) 8 day(s)
Appellant Ranbir Singh Bagga, Hyderabad
Respondent DCIT, Hyderabad
Appeal Type Income Tax (Search & Seizure) Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 13-01-2011
Date Of Final Hearing 08-12-2010
Next Hearing Date 08-12-2010
Assessment Year misc
Appeal Filed On 05-12-2005
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER IT(SS)A NO.181/H/2005 BLOCK PERIOD 1996-97 TO 2001-02 THE ACIT CENTRAL CIRCLE -1 HYDERABAD VS SHRI RANBIR SINGH BAGGA HYDERABAD (PAN ACXPB 4130 B) (APPELLANT) (RESPONDENT) IT(SS)A NO.179/H/2005 BLOCK PERIOD 1996-97 TO 2001-02 UPTO 1.4.2001 TO 3. 1.2002 SHRI RANBIR SINGH BAGGA HYDERABAD (PAN ACXPB 4130 B) VS THE DCIT CENTRAL CIRCLE 1 HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. RAMA RAO RESPONDENT BY : SHRI V. SRINIVAS CIT O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER: THESE ARE CROSS APPEALS FILED BY THE ASSESSEE AS WELL AS REVENUE ARE DIRECTED AGAINST THE ORDER PASSED BY TH E CIT(A)I HYDERABAD DATED 19.9.2005 AND PERTAINS TO THE BLOCK PERIOD 19 96-97 TO 2001-02 UP TO 1.4.2001 TO 3.1.2002. 2. THE FIRST GROUND IN REVENUE APPEAL IN ITA NO. 181/H/2005 IS WITH REGARD TO DELETION OF ADDITIONS AT RS.66 71 11 8/- WHICH HAVE BEEN CREDITED TO THE ASSESSEE CAPITAL ACCOUNT AND BANK A CCOUNT IN VARIOUS YEARS COVERING THE BLOCK PERIOD. BRIEF FACT OF THE ISSUE IS THAT THE FOLLOWING AMOUNT HAVE BEEN CREDITED TO CAPITAL ACCOUNT AND BA NK ACCOUNT IN VARIOUS YEARS AS FOLLOWS: ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 2 2 SL. FINANCIAL YEAR NAME OF THE CREDITOR AMOUNT (RS.) 1 1995-96 TIRUPATHI ENTERPRISE 40 000 2 1995-96 SUNNY ENTERPRISE 11 25 000 3 1996-97 CREDIT IN SYNDICATE BANK 1 70 000 4 1996-97 N.K. CHIT FUNDS 4 LAKHS 5 1996-97 SUNNY AGENCIES 2 LAKHS 6 1996-97 CASH CREDITS 1 LAKHS 7 1997-98 CREDIT IN SYNDICATE BANK 41 000 8 1997-98 AJIT ENTERPRISE 93 951 9 1998-99 INTRA PORT INDIA LTD. 25 LAKHS 10 2000-01 MAYANK SANGHANI 3 38 133 11 2001-02 MH KHAN 10 LAKHS 12 2001-02 TATA AGI 1.5 LAKHS 13 2001-02 RAVI KIRAN 1 LAKHS 14 2001-02 CITY CIVIL COURT 4 13 034 TOTAL 66 71 118 3. THE ASSESSING OFFICER HAS SOUGHT EXPLANATION OF THE ASSESSEE IN RESPECT OF THE ABOVE MENTIONED CREDIT. THE ASSES SEE GIVEN EXPLANATION AND AFTER CONSIDERATION OF THE ASSESSEES EXPLANAT ION THE ASSESSING OFFICER MADE AN ADDITION OF RS.66 71 118/- WITH THE FOLLOW ING CONCLUSIONS: I) REQUISITIONING OF STATEMENT OF AFFAIRS INCLUDING CA PITAL ACCOUNT OF THE INDIVIDUAL HAS BEEN MADE FOR THE FIRST TIME IN VIEW OF THE NEED TO VERIFY SOURCES FOR CERTAIN ASSETS UNEARTHED DURI NG THE SEARCH. II) ANALYSIS OF STATEMENTS FURNISHED HAS SHOWN ASSESSEE TO BE IN POSSESSION CONTROL & ENJOYMENT OF MONIES WHICH HAV E NOT SUFFERED. THEY HAVE BEEN SOUGHT TO BE INTRODUCED I NTO THE STATEMENT OF AFFAIRS EITHER IN THE FORM OF ACCRETIO N TO CAPITAL OR IN THE FORM OF UNVERIFIABLE CREDITS. III) IT HAS BEEN ALREADY NOTED HEREIN ABOVE THAT ASSESSE E HAS FLOATED SEVERAL GROUP CONCERNS WHICH FEATURE AS CREDITORS. THESE CREDITORS IN TURN HAVE RECEIVED FUNDS FROM CONCERNS SUCH AS M/S MK ENTERPRISES M/S SREE VIGNESWARA ENTERPRISES AND M/S SAI ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 3 3 PRASANNA ENTERPRISES. THESE CONCERNS ARE UNDER THE CONTROL OF THE ASSESSEE AND HAVE FACILITATED DIVERSION OF FUND S BY THE ASSESSEE AS SEPARATELY DISCUSSED IN THE BLOCK ASSES SMENT ORDER OF M/S GEMINI DISTILLERIES (HYD.) P LTD. IV) THEREFORE ACCRETIONS TO CAPITAL ACCOUNT AND OTHER CREDITS DISCUSSED ABOVE ARE CLEARLY WITHIN THE AMBIT OF UND ISCLOSED INCOME AS DEFINED IN SECTION 158-B(B) THAT IS AVAIL ABLE FOR COMPUTATION AS PER SECTION 158-BB(1) OF THE IT ACT 1961 AS AMENDED BY FINANCE ACT 2002 W.R.T. 1.7.1995. 4. ON APPEAL THE CIT(A) DELETED THE ADDITION ON THE REASON THAT NO MATERIAL/EVIDENCE WAS FOUND DURING THE COURSE OF SEARCH AT THE RESIDENCE OR BUSINESS PREMISES OF THE ASSESSEE IN R ESPECT OF THE ABOVE CREDIT SHOWN BY THE ASSESSEE IN THE STATEMENT OF AF FAIRS AND BANK ACCOUNT. AGAINST THIS THE REVENUE IS IN APPEAL BEFORE US. 5. THE LEARNED DR SUBMITTED THAT THE ABOVE CREDIT S ARE NOT GENUINE CREDITS AND THE STATEMENT OF AFFAIRS AND CA PITAL ACCOUNTS OF THE ASSESSEE WAS MADE FOR THE FIRST TIME IN VIEW OF THE NEED TO VERIFY THE SOURCES FOR ACQUISITION OF CERTAIN ASSETS UNEARTHED DURING THE COURSE OF SEARCH OPERATION. THE ASSESSEE WAS IN POSSESSION A ND ENJOYMENT OF FUNDS WHICH WERE NEVER SUFFERED TAX. HE SUBMITTED THAT T HESE CREDITS WERE UNVERIFIABLE AND THE ASSESSEE WAS NOT ABLE TO GIVE SATISFACTORY EXPLANATION. HE SUBMITTED THAT IT IS ALSO FACT THAT THE ASSESSEE DID NOT MAINTAIN ANY INDIVIDUAL ACCOUNT BOOKS AND THE INFORMATION REGARD ING INTRODUCTION OF CREDIT WAS NOTICED FROM THE STATEMENT OF AFFAIRS FO R THE YEARS COVERED IN THE BLOCK PERIOD FILED SUBSEQUENT TO SEARCH AND SEIZURE ACTION. 6. THE LEARNED AR SUBMITTED THAT IT IS UNDISPUTED FACT THAT NO MATERIAL/EVIDENCE WAS FOUND DURING THE SEARCH PROCE EDINGS AT RESIDENCE OR BUSINESS PREMISES IN RESPECT OF THE ABOVE MENTIO NED CREDITS SHOWN BY THE ASSESSEE IN HIS STATEMENT OF AFFAIR AND BANK S TATEMENTS FILED DURING ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 4 4 THE BLOCK ASSESSMENT PROCEEDINGS. ALL THE ASSETS AND PROPERTIES UNEARTHED DURING THE SEARCH WERE ALREADY DISCLOSED TO THE DEPARTMENT BEFORE THE DATE OF SEARCH. THE AMOUNTS RECEIVED FR OM CERTAIN CREDITORS WERE DEPOSITED IN THE SYNDICATE BANK AND UNION BANK OF INDIA WHICH ARE THE REGULAR BANK ACCOUNTS OF THE ASSESSEE AND DISCL OSED IN THE REGULAR RETURNS OF INCOME FILED BEFORE THE SEARCH E.G. RS.4 0 000 RECEIVED FROM TIRUPATHI ENTERPRISES DEPOSITED IN SYNDICATE BANK IN THE FINANCIAL YEAR 1995-96 DEPOSITED OF RS.1 70 000/- IN SYNDICATE B ANK IN THE FY 1995- 96 RS.4 LAKHS RECEIVED FROM IN SUNNY ENTERPRISES A ND RS.2 LAKHS RECEIVED FROM SUNNY AGENCIES DEPOSITED IN SYNDICATE BANK IN FY 1996-97 RS.93 951 DEPOSITED IN SYNDICATE BANK IN FY 1997-98 RS.25 LAKHS RECEIVED FROM INTRA PORT LTD. DEPOSITED IN UNION BA NK OF INDIA AND RS.4 13 034/- RECEIVED FROM CITY CIVIL COURT & RS. 1 LAKH RECEIVED FROM RAVI KIRAN DEPOSITED IN UNION BANK OF INDIA IN FY 2 001-02. SIMILARLY THE SUM OF RS.11 25 000 RECEIVED FROM M/S SUNNY ENTERPR ISES IN FY 1995-96 FOR PURCHASE OF BOMBAY PROPERTY WAS DISCLOSED TO TH E DEPARTMENT BEFORE THE DATE OF SEARCH. THE SAID PROPERTY WAS SOLD IN ASSESSMENT YEAR 1998- 99 AND THE CAPITAL GAINS WAS OFFERED TO TAX IN THE REGULAR RETURN OF INCOME FOR THE ASSESSMENT YEAR 1998-99 FILED BEFORE SEARCH . THE SUM OF RS.1 LAKHS RECEIVED FROM M/S AJIT ENTERPRISES WAS PAID T O M/S POONAM JEWEL WHOSE ACCOUNT IS SHOWN IN THE RETURN OF INCOME FILE D FOR THE ASSESSMENT YEAR 1998-99. ALL THE AFORESAID AMOUNTS RECEIVED W ERE EITHER DEPOSITED IN THE BANK ACCOUNTS ALREADY DISCLOSED TO THE DEPARTME NT OR INVESTED IN ASSETS/PROPERTIES DISCLOSED TO THE DEPARTMENT BEFOR E THE DATE OF SEARCH. HE FURTHER SUBMITTED THAT SUCH TRANSACTIONS WHICH A RE EITHER REFLECTED IN THE REGULAR BANK ACCOUNTS OR DISCLOSED TO THE DEPAR TMENT BEFORE THE DATE OF SEARCH AND IN RESPECT OF WHICH NO ADVERSE EVIDEN CE OR MATERIAL WAS FOUND DURING THE SEARCH PROCEEDINGS CANNOT BE THE SUBJECT MATTER OF BLOCK ASSESSMENT PROCEEDINGS. ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 5 5 7. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. THE DEPARTMENT HAS NOT ABLE TO CONTROVERT THE FINDINGS OF THE CIT( A). IT IS AN ADMITTED FACT THAT THERE IS NO MATERIAL FOUND DURING THE COURSE O F SEARCH RELATING TO THESE ADDITIONS AND AS SEEN FROM THE FACTS OF THE C ASE THE EVIDENCE RELATING TO THESE TRANSACTIONS ARE ALREADY ON THE R ECORDS OF THE DEPARTMENT AND SAID TO BE DISCLOSED TO THE DEPARTMENT. IF ANY THING TO BE DONE IT IS TO BE DONE IN THE REGULAR ASSESSMENT AND NOT IN THE BL OCK ASSESSMENT. THE BLOCK ASSESSMENT IS IN ADDITION THE REGULAR ASSESSM ENT IN RESPECT OF EACH PREVIOUS YEAR INCLUDED IN THE BLOCK PERIOD. THE TO TAL UNDISCLOSED INCOME RELATING TO BLOCK PERIOD SHALL NOT INCLUDE THE INCO ME ASSESSED IN ANY REGULAR ASSESSMENT AS INCOME OF THE RELATED BLOCK P ERIOD. THERE IS A RESTRICTION ON TREATING ANY INCOME ASSESSED UNDER T HE BLOCK ASSESSMENT SO AS TO FORM PART OF REGULAR ASSESSMENT OF ANY PRE VIOUS YEAR INCLUDED IN THE BLOCK PERIOD . THE SPECIAL PROCEDURE OF CHA PTER XIV B IS INTENDED TO PROVIDE A MODE OF ASSESSMENT OF UNDISCLOSED INCOME WHICH AHS BEEN DETECTED AS A RESULT OF SEARCH. AS THE STATUTORY P ROVISIONS GO TO SHOW IT IS NOT INTENDED TO BE A SUBSTITUTE FOR REGULAR ASSESSM ENT. ITS SCOPE AND AMBIT IS LIMITED IN THAT SENSE TO MATERIALS UNEARTH ED DURING THE SEARCH. IT IS AN ADDITION TO THE REGULAR ASSESSMENT ALREADY DO NE OR TO BE DONE. THE ASSESSMENT FOR THE BLOCK PERIOD CAN ONLY BE DONE ON THE BASIS OF EVIDENCE FOUND AS A RESULT OF SEARCH OR REQUISITION OF BOOKS OF ACCOUNTS OR DOCUMENTS AND SUCH OTHER MATERIALS OR INFORMATION A S ARE AVAILABLE WITH THE ASSESSING OFFICER. EVIDENCE FOUND AS A RESULT OF SEARCH IS CLEARLY RELATABLE TO SECTION 132 AND 132A. IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT UNDISCLOSED INCOME IS NOT DETERMINED ON T HE BASIS OF ANY SUCH MATERIAL FOUND DURING THE COURSE OF SEARCH BUT ON T HE BASIS OF STATEMENT OF AFFAIRS AND BANK ACCOUNTS FURNISHED BY THE ASSES SEE DURING THE PERIOD OF POST SEARCH ENQUIRY AND IN OUR HUMBLE OPINION T HESE MATERIAL CANNOT BE USED FOR THE PURPOSE OF DETERMINING THE UNDISCLO SED INCOME COVERING THE BLOCK PERIOD. ACCORDINGLY THIS GROUND OF THE REVENUE IS DISMISSED. ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 6 6 8. THE NEXT GROUND IS THAT THE CIT(A) OUGHT TO HA VE ALLOWED AN OPPORTUNITY TO THE ASSESSING OFFICER TO VERIFY THE FULL FACTS OF THE CLAIM OF THE ASSESSEE WITH REGARD TO DOUBLE ADDITION OF PROP ERTY HAVE SITUATED AT D.NO.1302 TO 1304 LAKE VIEW PALACE ROAD R.NO.1 B ANKARA HILLS HYDERABAD. 9. BRIEF FACTS OF THE ISSUE ARE THAT THE SEIZED DOCUMENTS SHOWED THE RECEIPT OF RENT OF RS.4 77 140/- IN RESPECT OF LAKE VIEW PALACE PROPERTY FOR THE PERIOD FROM AUGUST 1999 TO MARCH 2000 THOU GH THE RELEVANT LEASE AGREEMENT WAS WITH EFFECT FROM 1.1.2000 ONLY. THE SAID RENT OF RS.4 77 140/- WAS NOT REFLECTED IN THE RETURN OF IN COME FILED FOR THE ASSESSMENT YEAR 2000-01. IT WAS EXPLAINED BY THE A SSESSEE THAT THE SAID AMOUNTS WERE RECEIVED TOWARDS THE DAMAGED FURNITURE AND NOT TOWARDS RENT AND THE ACKNOWLEDGEMENT WAS WRONGLY GIVEN BY T HE ASSESSEE AS RENT RECEIPT. HOWEVER THE ASSESSEE COULD NOT PRODUCE A NY SUPPORTING EVIDENCE TO SUBSTANTIATE HIS CLAIM. HENCE THE SAME WAS TRE ATED AS UNDISCLOSED RENTAL RECEIPTS BY THE ASSESSING OFFICER. AFTER AL LOWING THE DEDUCTION ON ACCOUNT OF REPAIRS U/S 24(1) OF THE ACT THE NET RE NTAL INCOME WAS COMPUTED AT RS.3 57 855/- AND WAS TAXED AS UNDISCLO SED INCOME OF THE ASSESSEE. 10. THE ASSESSING OFFICER FURTHER NOTICED FROM TH E SEIZED DOCUMENTS THAT THE ASSESSEE RECEIVED A SUM OF RS.55 528/- PER MONTH FOR THE MONTH OF JANUARY AND FEB 2000 IN RESPECT OF SP ECTRUM SHOWROOM PROPERTY WHICH WAS NOT DISCLOSED IN THE RETURN OF I NCOME FIELD FOR ASSESSMENT YEAR 2000-01. HE COMPUTED THE RENT OF T HE ENTIRE YEAR AT RS.6 66 336/- (RS.55 528 X 12). AFTER ALLOWING THE DEDUCTION FOR REPAIRS U/S 24(1) THE NET RENTAL INCOME WAS COMPUTED AT RS. 4 99 752/- AND WAS TAXED AS UNDISCLOSED INCOME OF THE ASSESSEE. ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 7 7 11. THE CIT(A) HAS OBSERVED THAT THE LAKE VIEW PA LACE PROPERTY AND SPECTRUM SHOWROOM PROPERTY ARE ONE AND THE SAME PROPERTY BEARING D.NO.1302-1304 R.NO.1 BANJARA HILLS HYDERABAD. THE NAME OF THE PREMISES IS LAKE VIEW PALACE WHILE THE NAME OF THE SHOWROOM IN THE SAME PREMISES IS SPECTRUM SHOWROOM. THE SAID PROPERTY W AS PURCHASED BY THE ASSESSEE FROM SMT. MALLIKA HARDEEP SINGH CHHABRIA A ND SRI HARPREET SINGH CHABRIA IN AUGUST 1999 ALONG WITH THE TENANT M/S ARAVIND FASHIONS LTD. AS PER SEIZED DOCUMENTS THE RENT FO R AUGUST 1999 TO MARCH 2000 WAS RECEIVED THROUGH ERSTWHILE OWNERS. IT IS ALSO EVIDENT THAT THE ASSESSEE MADE A REQUEST TO M/S ARAVIND FASHIONS LTD. TO ISSUE TDS CERTIFICATES IN HIS NAME FOR THE TDS MADE OUT OF TH E RENT PAYMENT. HENCE THE CLAIM OF THE ASSESSEE THAT THE SAID AMOUNTS WER E RECEIVED AS REIMBURSEMENT OF DAMAGED FURNITURE. THE UNDISCLOSE D RENTAL INCOME OF RS.3 57 855/- AS EVIDENT FROM THE SEIZED DOCUMENTS IS ACCORDINGLY UPHELD AS THE UNDISCLOSED INCOME FOR THE BLOCK PERIOD BY C IT(A). ANOTHER ADDITION OF RS.4 99 752/- MADE BY THE ASSESSING OFFICER IN R ESPECT OF THE SAME PROPERTY IS DELETED BEING DUPLICATE ADDITION BY CIT (A). AGAINST THE DELETION OF ADDITION THE REVENUE IS IN APPEAL BEF ORE US. 12. WE FIND MERIT IN THE CONTENTION OF THE DEPART MENT. WHEN THE CIT(A) WANTS TO DELETE THE ADDITION IT IS FAIR ON HIS PART TO CALL FOR THE COMMENTS OF THE ASSESSING OFFICER BEFORE DELETION W HICH HE FAILED TO DO SO. HENCE WE SET ASIDE THE ISSUE TO THE FILE OF ASSESS ING OFFICER TO EXAMINE WHETHER THERE IS ANY DOUBLE ADDITION ON THIS COUNT AND DECIDE THE ISSUE THEREUPON. 13. THE NEXT GROUND IS THAT THE CIT(A) OUGHT TO H AVE CONSIDERED THE INTEREST ON RESURGENT INDIA BOND OF RS.1 19 298 /- AS UNDISCLOSED INCOME OF THE ASSESSEE AS UPHELD BY THE CIT(A) IN O THER CASES OF ASSESSEES FAMILY MEMBERS. ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 8 8 14. BRIEF FACTS OF THE ISSUE ARE THAT THE SEIZED DOCUMENTS SHOWED THE RECEIPT OF RS.46 53 268/- INCLUDING THE INTERES T OF RS.1 91 298 ON PREMATURE ENCASHMENT OF RESURGENT INDIA BONDS ON 16 .4.2001. ACCORDING TO THE ASSESSING OFFICER THE SAID INTEREST WAS NOT SHOWN IN THE REGULAR RETURN OF INCOME FOR THE ASSESSMENT 2002-03 FIELD A FTER SEARCH. THE ASSESSEE EXPLAINED BEFORE THE ASSESSING OFFICER THA T THE SAID INTEREST WAS EXEMPTED U/S 10(15) OF THE ACT AND HENCE NOT OFFERE D FOR TAXATION. THE ASSESSING OFFICER HELD THAT THE ASSESSEE IS NOT ENT ITLED FOR EXEMPTION U/S 10(15) SINCE THE BONDS WERE ENC-CASHED PREMATURELY. IT WAS FURTHER HELD THAT SINCE THE PREMATURE ENCASHMENT HAS COME TO LIG HT ONLY AS A RESULT OF SEARCH THE INTEREST INCOME IS TAXABLE AS UNDISCLOS ED INCOME OF THE ASSESSEE. ON APPEAL THE CIT(A) DELETED THE IMPUGNE D ADDITION SINCE IT IS THE SUBJECT MATTER OF REGULAR ASSESSMENT AND NOT B LOCK ASSESSMENT. 15. WE HAVE HEARD ON THE ISSUE. ADMITTEDLY FACT IS THAT THE ENTIRE RECEIPTS ON THE PREMATURE ENCASHMENT OF BONDS INCLU DING INTEREST WAS DEPOSITED IN THE REGULAR BANK ACCOUNT WHICH IS ON R ECORD OF THE DEPARTMENT. HENCE THE IMPUGNED RECEIPT CANNOT BE SUBJECT MATTER OF BLOCK ASSESSMENT AS HELD IN EARLIER PARA. ACCORDIN GLY THE DELETION BY CIT(A) IS JUSTIFIED. THE REVENUE APPEAL ON THIS G ROUND IS DISMISSED. 16. THE NEXT GROUND IS THAT THE CIT(A) OUGHT TO H AVE UPHELD THE ADDITION OF RS.20 LAKHS AS UNEXPLAINED INVESTMENT I N VIEW OF THE FACTS DISCUSSED IN THE ASSESSMENT ORDER. 17. THE BRIEF FACTS OF THE ISSUE ARE THAT THE ASS ESSEE ALONG WITH OTHER FOUR FAMILY MEMBERS JOINTLY PURCHASED THE AFO RESAID PROPERTY FOR A TOTAL CONSIDERATION OF RS.70 LAKHS. HOWEVER THE D OCUMENTS SEIZED IN THE FORM OF ACKNOWLEDGEMENT RECEIPTS SHOWED THAT WHILE THE OTHER CO OWNERS PAID AN AMOUNT OF RS.28 LAKHS EACH THE ASSESSEE PA ID RS.48 LAKHS AS SALE CONSIDERATION. THE ASSESSEE HAS REFLECTED THE PAYM ENT OF ONLY RS.20 LAKHS ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 9 9 IN HIS STATEMENT OF AFFAIRS. THE BALANCE INVESTMEN T OF RS.20 LAKHS WAS NOT SUPPORTED BY ANY EXPLAINED SOURCES OF INCOME AND HE NCE THE SAME WAS TAXED AS UNDISCLOSED INCOME OF THE ASSESSEE FOR THE BLOCK PERIOD. ON APPEAL THE CIT(A) HELD THAT THE CHEQUE BEARING NO. 181188 AND 181146 BOTH DATED 27.4.2001 FOR RS.10 LAKHS EACH HAS BEEN CANCELLED AND NOT AT ALL EN-CASHED. THIS WAS EVIDENCED BY THE BANKER CE RTIFICATE FOR NON ENCASHMENT OF CHEQUES. IN VIEW OF THIS IN THE PLA CE OF TWO CHEQUES MENTIONED ABOVE GIVEN THE TWO DEMAND DRAFTS BEARIN G NOS. 047816 AND 042817 DATED 10.5.01 FOR RS.10 LAKHS EACH DRAWN ON BANK ACCOUNT NO.8274 FROM UNION BANK OF INDIA RAMKOTI BRANCH OF SHRI SATPAL BAGGA AND DD NO.35598 OF UBI RAMKOTI BRANCH OF SRI RAM K RISHNA FINANCIER PROPRIETARY CONCERN OF SMT. DEVENDER.KAUR BAGGA AN D ACCORDINGLY HE DELETED THE ADDITION. AGAINST THIS THE REVENUE I S IN APPEAL BEFORE US. 18. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUED AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE CANCELLATION OF THE ABOVE MENTIONED CHEQUES DATED 27.4.2001 FOR RS.10 LAKHS EACH HAS BE EN EVIDENCED BY THE BANKERS CERTIFICATE. THESE FINDINGS OF THE CIT(A) HAS NOT BEEN CONTROVERTED BY THE DEPARTMENT. HENCE IN OUR OPINION IT IS T O BE CONSIDERED THE TWO CHEQUES WERE CANCELLED AND FRESH DEMAND DRAFT FOR R S.10 LAKHS EACH HAS BEEN ISSUED AS STATED IN THE FACTS OF THE CASE. BE ING SO THERE IS NO MATERIAL TO SHOW THAT THE ASSESSEE PAID RS.48 LAKHS INSTEAD OF RS.28 LAKHS AND IT HAS TO BE CONSIDERED AS ONLY RS.28 LAKHS HAS BEEN PAID AND ACCORDINGLY THE DELETION ON THIS COUNT BY THE CIT (A) IS JUSTIFIED. THE APPEAL OF THE REVENUE IS PARTLY ALLOWED. 19. NOW COMING TO THE ASSESSEES APPEAL IN ITA NO .179/H/2005 THE FIRST GROUND IS THAT THE CIT(A) ERRED IN CONFIR MING THE ADDITION MADE BY THE ASSESSING OFFICER OF RS.3 57 855/- AS UNDISCLOS ED RENT FROM LAKE VIEW PALACE PROPERTY. ITA NOS.179 & 181/H/2005 SHRI RANBIR SINGH BAGGA HYD. 10 10 20. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. AS PER THE SEIZED DOCUMENTS THE RENT FOR AUGUST 1999 TO MARC H 2000 WAS RECEIVED THROUGH ERSTWHILE OWNERS. IT IS ALSO EVIDENT THAT THE ASSESSEE MADE A REQUEST TO ARVIND FASHION LTD. TO ISSUE TDS CERTIFI CATE IN HIS NAME FOR THE TDS MADE OUT OF THE RENT PAYMENT. HENCE THE CLAIM OF THE ASSESSEE THAT THE SAID AMOUNT WAS RECEIVED AS REIMBURSEMENT OF DA MAGED FURNITURE IS NOT BORNE OUT OF THE RECORDS. ACCORDINGLY IT IS B E TREATED AS UNDISCLOSED RENTAL INCOME. THE FINDINGS GIVEN BY THE CIT(A) IS CORRECT AND THE SAME IS CONFIRMED. THIS GROUND OF THE ASSESSEE IS DISMISSE D. 21. THE NEXT GROUND IN ASSESSEES APPEAL IS WITH REGARD TO CONFIRMING OF RS.2 LAKHS OUT OF RS.12 LAKHS INVESTE D WITH M/S ELMER SOFTWARE LIMITED AS UNDISCLOSED INCOME. THIS GROUN D IS NOT PRESSED BY LEARNED AR BEFORE US AND HENCE THE SAME IS DISMISSE D AS NOT PRESSED. 22. IN THE RESULT THE REVENUE APPEAL IN ITA NO.1 81/H/2005 IS PARTLY ALLOWED AND THE ASSESSEE APPEAL IN ITA NO.17 9/H/2005 STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 13.1.2011 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 13 TH JANUARY 2011 COPY FORWARDED TO: 1. SHRI S. RAMA RAO ADVOCATE FLAT NO.103 H.NO.3- 6-542/4 ST.NO.7 HIMAYATNAGAR HYD. 2. THE DCIT CENTRAL CIRCLE 1 HYDERABAD 3. CIT(A)-I HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP