Mahabir Prasad Rungta v Office of the Commissioner of Income Tax (Appeals), Ranchi & Anor Search and Seizure — Block assessment — Procedure — Evidentiary value of loose sheets as “document” — Validity of Addition — Pursuant to Search and seizure operations conducted at premises of assessee u/s 132, notice u/s 158BC was issued to assessee — AO completed assessment u/s 158BC and assessed undisclosed income vide assessment order — CIT(A) allowed appeal in part — Assessee preferred second appeal to Tribunal claiming that CIT(A) had erred in sustaining an addition as document on basis of which AO had made addition was loose sheets — Held, special procedure was contemplated for search and seizure and as per s 158B(b) “undisclosed income” of the block period was inclusively defined — Loose sheets recovered during seizure ought to be taken as “other documents” having evidentiary value and they cannot be merely termed as loose sheets — Provision of sub-s (4A) of s 132, raises presumption concerning correctness of seized documents and impugned presumption was rebuttal — However, assessee had not adduced any evidence rebutting presumption raised u/s 132(4A) — Assessment regarding undisclosed income based upon loose sheet found during search is upheld — Appellate authority is correct in sustaining addition — No interference warranted — Assessee’s appeal is dismissed.
Posted on: Fri, 17 Jan 2014 11:01:00 +0000