COMMISSIONER OF INCOME TAX Vs. PARAG KOTECHA

JUDGEMENT

(1.) THIS appeal is filed being aggrieved by the order passed by the Tribunal, Bangalore Bench 'B' in ITA No. 31/Panj/2002 (block period 1988-99 to 1998-99) dt. 2nd May, 2005 wherein the Tribunal has dismissed the appeal filed by the Revenue and partly allowed the cross-objection filed by the assessee.

(2.) THE material facts leading upto this appeal are as follows : The respondent is an individual assessee and is a supari merchant. He is a wholesale supari merchant and has started his business in May, 1993 and has been filing the returns for the asst. yr. 1993-94. On the basis of the information in the possession of the Department and since there was reason to believe that assessee is in possession of money, assets, properties which represent either wholly or partly income which has not been disclosed for the purpose of IT Act, 1961 (hereinafter called 'the Act'), a search was conducted under S. 132 of the Act on 28th Jan., 1998. Thereafter assessment proceedings were initiated under Chapter XIV-B and notice was issued under S. 158BC of the Act on 17th Aug., 1998. The assessee declared the undisclosed income of Rs. 2,00,000 (Rs. 47,740 for asst. yr. 1997-98, Rs. 1,52,270 for asst. yr. 1998-99) representing the unaccounted income from the business. Thereafter, notices under ss. 142 (1) and 143(2) of the Act were issued and on hearing the assessee, AO passed an order holding that the assessee was having four benami accounts as described in the assessment order in the name of M/s Anil Kumar & Co. and M/s Pramod Traders in UCO Bank, Mangalore and M/s Anil Kumar & Co. and M/s Sangam Traders in Indian Bank. Mangalore and found the following details :

(3.) WE have heard the learned counsel appearing for the appellants and learned counsel appearing for the respondent.