SUNIL AGARWAL Vs. ASSTT. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is an appeal by assessed against the assessment order under Sec. 158BC of the Income Tax Act relating to block period from 1 -4 -1986 to 20 -6 -1996, relevant to assessment years 1987 -88 to 1997 -98.

(2.) In first ground the assessed has objected the addition of Rs. 86 lakhs on account of cash seized. In ground No. 2 the assessed has objected the following additions : These additions were made on account of alleged commission on billing on job contract work in block period. In the third ground, the assessed has objected the following additions made on account of billing commission on trading activities in the block period:

(3.) Brief facts of the case are that a search and seizure operation was conducted on 20 -6 -1996, at the residential and business premises of Shri Sunil Agarwal and his associated persons/concerns which continued till 30 -7 -1996, when the last warrant of authorisation of search was executed. Notice under Sec. 158BC was issued on 30 -9 -1996, requiring the assessed to prepare a true and correct return of his total income including the undisclosed income for the block period . No return was submitted within the time allowed, i.e., 16 days of the service of notice. However, the assessed filed a return on Form No. 2B on 9 -6 -1997. From the assessment, order it is revealed that assessed had filed its regular Income Tax return only for assessment years 1993 -94 and 1994 -95. These returns were filed with Income Tax Officer, Ward 3(II), Jaipur declaring an income of Rs. 31,590 and Rs. 33,655, respectively, only. As per the assessment order wherein it is mentioned that assessed has admitted to have earned undisclosed income to the tune of Rs. 2.27 crores for tax purposes. However, no such income was disclosed in the return filed by the assessed on 9 -6 -1997. As per the order of the assessing officer, the assessed's attitude was not co -operative with the department because no reply in response to various notices was filed. The assessed started co -operating from 14 -7 -1997, only, a date very close to the last date for completion of assessment, i.e., 31 -7 -1997. It was found that assessed is interested in M/s Polychem Traders (proprietorship concern of assessed); M/s Petrochem Overseas (India), proprietorship concern of assessed; M/s Petro Impex India (P) Ltd., a company where assessed is director and in M/s Par Petrochem Ltd., wherein the assessed is one of the directors. As per the assessment order, the assessed has filed the trading and profit and loss account as well as balance sheets of his proprietary concern from assessment years 1990 -91 to 1996 -97.