COMMISSIONER OF INCOME TAX Vs. K ESWARAPPA

JUDGEMENT

(1.) THE appeal in TCA 656 of 2004 filed by the Revenue was admitted on the following substantial questions of law:

(2.) WHETHER on the facts and in the circumstances of the case that the Income Tax Appellate Tribunal was right in relying on irrelevant material and incorrect statement filed by the assessee at the appellate stage and disregarding relevant evidence discovered in the search as discussed in the order of the assessment and deleting the disallowance of Rs.17,15,000/- being the peak of money lending investments"

(3.) THE assessee is doing mainly lodging business at the premises called Geethalayam apart from financing and letting out the building at Ranipet. An action was taken by the Intelligence Wing of the Department by way of search. A sum of Rs.17,08,672/- and jewelry worth 2302 grams were seized. THE assessee came forward with the disclosure of Rs.54.77 lakhs. Certain incriminating documents were also available. Ultimately, the Assessing Authority, after giving notice, has arrived at a conclusion that the total undisclosed income comes to Rs.1,04,54,542/- and tax has been imposed to the extent of Rs.62,72,724/- along with the interest. It was against the said order of the Assessing Authority, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) and the same came to be allowed partly. Being not satisfied with the same, the assessee has filed a further appeal before the Income Tax Appellate Tribunal. THE Tribunal again has allowed the said appeal partly, but dismissed the appeal filed by the department. As against the said order, the revenue has filed these two appeals.