COMMISSIONER OF INCOME TAX Vs. V.B. AGGARWAL

JUDGEMENT

(1.) A search was carried out in the business and residential premises of the Aggarwal Group. On the basis of the material said to have been obtained during the search, the AO made an addition of Rs. 65,45,000 on account of unexplained cash credit in the books of the assessee. The AO made the additions for want of proper/complete details of confirmations of loans and advances that were taken by the assessee.

(2.) THE view expressed by the AO was challenged by the assessee before the Tribunal, which accepted the contentions of the assessee and that is why the present appeal has been filed before us under s. 260A of the IT Act, 1961. The Tribunal noted the contention on behalf of the assessee made before it to the effect that addition on account of cash credit can be treated as undisclosed income only on the basis of evidence found as a result of search or requisition of books of account or documents and such other material or information as are available with the AO and that in this case no such material or information was found during the search to show that the credits appearing in the books of account were not genuine. We have been shown the definition of undisclosed income under s. 158B(b) of the Act. This reads as follows : "158B. In this Chapter, unless the context otherwise requires, - - (a) xxxx (b) 'undisclosed income' includes any money, bullion, jewellery or other valuable article or thing or any income based on any entry in the books of account or other documents or transactions, where such money, bullion, jewellery, valuable article, thing, entry in the books of account or other document or transaction represents wholly or partly income or property which has not been or would not have been disclosed for the purposes of this Act or any expense, deduction or allowance claimed under this Act which is found to be false."

(3.) A perusal of the above definition clearly shows that undisclosed income includes any amount, which has not been or would not have been disclosed by the assessee. Insofar as the present case is concerned, the admitted position is that the amounts were disclosed by the assessee in its books of account. In addition, the Tribunal has noted that regular returns have also been filed by the assessee in respect of the relevant assessment years and we are told by learned counsel for the respondent that regular assessments have been completed.