POONAM JAIN Vs. JOINT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE cross -appeals in the case of Mrs. Poonarn Jain arise out of the Commissioner (Appeals), order dated 8 -5 -2000, the cross -appeals in the case of Smt. Trishla Jain arise out of the order of the Commissioner (Appeals), dated 14 -7 -2000, the cross -appeals in the case of MC Jain arise out of the Commissioner (Appeals)'s order dated 22 -5 -2000 and the appeal directed by the revenue in the case of Shri Sanjay Jain arises out of the order of the Commissioner (Appeals) dated 30 -3 -2000. As the common issues are involved in all the appeals, these are being disposed of by a consolidated order. For the sake of convenience, we will first take up the appeals in the case of Smt. Poonam Jain. assessed's appeal: (IT(SS)A No. 78/Del/2000)

(2.) BRIEFLY the facts of the case are that the assessed is an individual who is being assessed to tax regularly and the regular books of account including the purchase consideration was mentioned. A search and seizure operation in the Jain group of cases including all the four assessed before us was conducted on 3 -9 -1997. During search and seizure operation, certain incriminating documents relating to all the four assessed were found. Accordingly, the notices under section 158BC of the Act was issued in all the cases in response to which the return of undisclosed income for the block period 1988 -89 to assessment year 1998 -99 (up to 3 -9 -1997) was filed.

(3.) THE assessed filed the return of undisclosed income at Rs. 41.34 lakhs. During search, the documents pertaining to the assessed were found which were inventoried as Annex. A -20. As per the seized documents, the assessed purchased a property No. B -1/100, Ashok Vihar, Phase -II, New Delhi from Smt. Surjit Kaur for a consideration of Rs. 3,90,000 on 28 -9 -1994. The property was subsequently sold for Rs. 4,25,000 on 6 -9 -1995. When the assessed was asked to explain the sources of purchase consideration, it was explained to assessing officer. It was also stated that the capital gains on the sale of such property was already declared in the Income Tax return for assessment year 1996 -97 which has already been accepted by the department.