COMMISSIONER OF INCOME TAX Vs. RADHIKA CREATION

JUDGEMENT

(1.) PROPOSED the following questions, which, according to it, are substantial questions of law and require the consideration of this Court :

(2.) PROPOSED questions 'a' to 'c', as would be apparent from a plain reading thereof, relate to the addition of Rs. 44,38,997 which has been held to be the unexplained expenditure of the assessee under s. 69C of the IT Act, 1961 (hereinafter referred to as 'the said Act'). The AO had examined the details of the said expenditure and found that the same was not authenticated by any vouchers and consequently, made the addition of Rs. 44,38,997 as unexplained expenditure in terms of s. 69C of the said Act.

(3.) WE may point out that during the search and seizure operations, as indicated in para 3.1 of the order passed by the CIT(A), no evidence was found indicating that the assessee had any undisclosed income. However, the AO had directed the assessee to get its accounts audited as per the provisions of s. 142(2A) of the said Act. It is on the basis of the audit report prepared under s. 142(2A) of the said Act that the addition appears to have been made by the AO.