Itta/575/2012 Of Commissioner Of Income Tax-Iii v. Smt. Chirala Nivedita Reddy

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH,HYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAAND THE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No. 575 of 2012 DATE: 17.07.2013 Between: Commissioner of Income Tax-IIIHyderabad. … Appellant And Smt. Chirla Nivedita Reddy,Hyderabad. … Respondent This court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE Ms. JUSTICE G. ROHINI I.T.T.A. No. 575 of 2012 JUDGMENT:(Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) We have heard Sri B. Narasimha Sarma, learned counsel for theappellant and gone through the impugned judgment and order of the learnedTribunal. It appears that in the block assessment period the assessing authorityadded the undisclosed income without having any basis of search andseizure material. The learned Tribunal therefore found that addition ofRs.3,02,44,000/- is not supported by any seized material. It was again foundthat at best the addition of Rs.17,09,007/-can be made as undisclosedincome on the basis of the material found during the course of searchoperation as investment towards cost of construction, and the balanceamount of Rs.2,85,34,993/- cannot be added as undisclosed income, sincethe same is not supported by any seized material. In view of the aforesaid findings and the settled principle of law that noundisclosed income can be arrived at without having any basis of search andseizure material, we dismissed the appeal. ______________________ K.J. SENGUPTA, CJ _______________ Date: 17.07.2013 ES G. ROHINI, J