The Commissioner Of Income Tax – 1, Thane v. Bhavanand Upadhyaya

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2415 OF 2009 The Commissioner of Income Tax – 1, Thane..Appellant. Versus Bhavanand Upadhyaya ..Respondent. Mr.S.K. Bhatnagar for the appellant.Mr.Atul K. Jasani i/by Mr.P.C. Tripathi for the respondent. CORAM : J.P. Devadhar &A.R. Joshi, JJ. DATE : 22[nd] November 2011 P.C. : 1.Whether the Income Tax Appellate Tribunal was justified in deleting the additions made by the assessing officer in the block assessment order dated 29[th] November 1999 is the question raised in this appeal. 2.In the block return filed by the assessee for the block period, the assessee had offered a sum of Rs.1,62,180/- as undisclosed income for the period 1993-94 to 1997-98 which forms part of the block period. In the block assessment order, the assessing officer made additions amounting to Rs.7,28,020/- on account of estimated business income, unexplained capital, unexplained cash credit etc. 3.The additions made by the assessing officer were deleted by the Commissioner of Income Tax (Appeals) and confirmed by the Income Tax Appellate Tribunal inter alia on the ground that no material whatsoever were found during the course of search which could be the basis for making the aforesaid additions. The Income Tax Appellate Tribunal in para-7 of its order has recorded a finding that since the additions made by the assessing officer were not based on the evidence found as a result of search, the said additions could not be sustained under the block assessment and the same could be considered under the regular assessment. 4.In our opinion, no fault can be found with the aforesaid decision of the Income Tax Appellate Tribunal. Accordingly, the appeal is dismissed with no order as to costs. (J.P. Devadhar, J.)