D C I T Vs. LALITKUMAR M PATEL

JUDGEMENT

(1.) AGGRIEVED by the order of the Income Tax Appellate Tribunal for the block period between 1.4.1995 to 19.12.2001, this Tax Appeal is preferred under section 260A of the Income Tax Act, 1961 ( the Act for short) proposing following substantial question of law for our consideration :

(2.) BRIEF facts are as follows :

(3.) SEARCH and seizure action in case of Jayraj Group was carried out under section 132 on 19.12.2001. On the department finding certain incriminating materials in relation to Shri Upendra N. Patel, Shri Champak M. Patel and the present assessee respondent which were not accounted for in regular books of account, the Assessing Officer noted that the assessee and Shri Champak M. Patel acquired the rights in the property of M/s. Hindusthan Earth Movers Pvt. Ltd. Such rights were eventually acquired by Shri Jayesh Dave and Shri Upendra N. Patel on the strength of compromise agreement arrived at by and between the parties dated 30.9.2000. Civil Court also put a seal of approval on the same and compromise decree to that effect came to be passed. It was further noted that when the Memorandum of Understanding was arrived at on 1.11.1996, the rights in the land of M/s. Hindusthan Earth Movers Pvt. Ltd. had been acquired. The total cash payment was to the tune of Rs. 37 lakhs and the bank draft of Rs. 1 crore was also given which was handed over to the Court receiver appointed by the High Court of Bombay. It was noted that by virtue of compromise decree, the other two persons and the present assessee respondent received huge parcel of land, nearly 1,20,000 sq, mtrs., the sale deed was executed however, only reflecting the sale consideration of Rs.5.60 lakhs in case of Shri Upendra Patel. As the market price was much higher, these facts when were discovered during the search in case of Jayraj Group, notices under section 158BD of the Income Tax Act were issued. Authority relied on various documents as also on appraisal report for the same purpose.