COMMISSIONER OF INCOME TAX Vs. B.K. MALIK

JUDGEMENT

(1.) IT appears that a search operation under s. 132 of the IT Act, 1961 was conducted at the residential and business connection with the construction of a farm house in Rajokari were seized.

(2.) 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.) OUT of the balance amount of Rs. 1.56 crores the assessee (Deepak Seth) surrendered an amount of Rs. 86.79 lakhs and the expenditure with regard to the balance amount of Rs. 70 lakhs is what is in dispute. This amount was said to represent the reserve fund of M/s Mina Exports Ltd.