COMMISSIONER OF INCOME TAX Vs. SONAL CONSTRUCTIONS

JUDGEMENT

(1.) These two appeals have been filed by the Revenue. Since they are connected and were also heard together, they are disposed of by this common judgment.

(2.) We may first take up ITA No.1132/2007 for disposal. The assessee is a partnership firm. There was a search of its premises under Section 132 of the Income Tax Act, 1961 ("Act", for short), on 17.12.1999 and on the basis of the materials found and seized, notice under Section 158 BC of the Act was issued on 05.07.2001 calling upon the assessee to furnish a return of income in the prescribed form, for the block period from 01.04.1989 to 17.12.1999. The assessee filed the block return on 27.08.2001. Thereafter several hearings took place and eventually by block assessment order dated 31.12.2001, the assessee's total undisclosed income was computed at Rs. 3,69,27,587/-. This consisted of several additions as undisclosed income as follows:- <FRM>JUDGEMENT_5347_ILRDLH22_2012_1.html</FRM>

(3.) The assessment order itself does not contain the break-up or other details of the additions and these are all appended to the assessment order as annexure. The assessee filed an appeal to the CIT (Appeals) who restricted the addition to Rs. 2,67,87,137/- on the basis that this amount represented the peak investment made by the assessee in different construction projects undertaken by it. The benefit of telescoping was given to the assessee, which resulted in a relief of Rs. 1,01,39,950/-.