COMMISSIONER OF INCOME-TAX Vs. DEEPAK SETH

JUDGEMENT

(1.) THE Revenue is aggrieved by an order dated August 26, 2005, passed by the Income -tax Appellate Tribunal, Delhi Bench 'E' in IT(SS)A Nos. 136 -138/Delhi/2000 relevant for the block period April 1,1987, to November 6, 1997.

(2.) IT appears that a search operation under Section 132 of the Income -tax Act, 1961, was conducted at the residential and business premises of the assessed on November 6,1997. During the search, cash vouchers showing requirement of material, etc., in connection with the construction of a farm house in Rajokari were seized. As per the documents available, the total expenditure on construction of the farm house as on the date of the search amounted to Rs. 4.88 crores. Out of this amount, a sum of Rs. 3.31 crores was booked in the accounts during the date of search. The balance amount of Rs. 1.56 crores represented the amount for which cash vouchers were found during the search.

(3.) THE Income -tax Appellate Tribunal noted that during the search, a day book which is annexure A -3 was seized. The Tribunal also noted that the details of the accounts mentioned in the day book showed that two different balances were maintained: one representing cash kept in the safe and the other representing the reserve fund. The accounts in the day book were found to tally completely with the cash books maintained by M/s. Mina Exports Ltd. and M/s. Pearl Global Ltd., a sister concern. No discrepancies were noticed and the cash shown in the books was physically found in the searched premises. The amount representing the reserve fund was not found during the search and as per the Explanationn given by the assessed this amount was utilized in the construction of the farm house at Rajokari.