CIT Vs. AJAY KAPOOR

JUDGEMENT

(1.) THIS appeal by the Revenue under Section 260A of the Income Tax Act, 1961 (Act, for short) raises the following the substantial question of law:-

(2.) 2010 and relates to the block period ending 6th November, 2001.

(3.) IN response to the notice under Section 158BC, the respondent filed his return declaring undisclosed income of Rs.18,00,000/-. The Assessing Officer in the assessment order dated 28th November, 2003 made several additions and assessed the total income of the respondent-assessee at Rs.9,91,63,790/-. The aforesaid addition included additions on the basis of a document mentioning undisclosed sales of Rs.9,73,63,789/- between the period 1st April, 2001 to 6th November, 2001. This document was accepted by the respondent- assessee in their letter dated 6th June, 2000 as a record of their unaccounted sales. The Assessing Officer made addition on account of unrecorded purchases of Rs.4,50,17,616/- on the basis of the said paper. The Assessing Officer held that the difference between unrecorded purchases (Rs.450,17,616/-) and unrecorded sales figures (Rs.9,73,63,789/-) i.e. Rs.5,23,46,173/- should be treated as undeclared profit earned during the block period. Thus two additions of Rs.4,50,17,616/- and Rs.5,23,46,173/- were made.