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THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE H0N’BLE SRI JUSTICE K.C.BHANU
I.T.T.A. No.28 OF 1999
JUDGMENT: (Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta)
This appeal is preferred against the judgment and order dated 11.03.2009 of the learned Income Tax Appellate Tribunal, Hyderabad Bench ‘B’, Hyderabad.
2 . This Court, by order, dated 01-12-1999, admitted the appeal on the following substantial question of law:
“Whether, on the facts and circumstances of the case, the Appellate Tribunal is justified in deleting the addition of Rs.82,13,065/- made in Block Assessment on the purported ground that no material pertaining to the transactions has been seized in the course of search under Section 13 of the I.T.Act.?”
3 . We have heard Mr.S.R.Ashok, learned counsel appearing for the appellant and gone through the impugned judgment and order of the learned Tribunal.
The learned Tribunal, on fact, found that none of the items tabulated in the order, is liable to be treated as undisclosed income in the course of block assessment under Section 158 of the Income Tax Act, 1961, and that while disallowance of Rs.80,00,000/- towards service charges claimed as paid to T.Rama Murthy, was made on the ground that the assessee had not availed any service so as to warrant such a huge payment of service charges, thus doubting the genuineness of the payment claimed, and that all the four other disallowances were made on the grounds of unreasonableness of the amounts claimed in the books of account, and inadmissible nature of the expenditure claimed. It is further held by the learned Tribunal that, these disallowances were made on the basis of the entries in the books of account regularly maintained by the assessee in its regular
course of business and the finalized statements of account, such as profit and loss account etc., and even the returns filed for the years covered by the block assessment in normal course, and that the information leading to the disallowance is not obtained from any entry in the assessing officer has access even otherwise than through material found at the time of search operations.
It is settled proposition of law that addition can be made on profit assessment, if such amount is tallying with any material, which was found at the time of search operations. It is not the case here. Hence, we do not find any merit in this appeal.
Accordingly, the Appeal is dismissed. No order as to costs.
Miscellaneous petitions, if any, pending in this appeal shall stand closed.
_____________________ K.J. SENGUPTA, CJ
_______________ K.C.BHANU, J
23.7.2013 DRK/HSD
THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE H0N’BLE SRI JUSTICE K.C.BHANU
I.T.T.A. No.28 OF 1999 (Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta)
23.7.2013