COMMISSIONER OF INCOME TAX Vs. VINOD DANCHAND GHODAWAT

JUDGEMENT

(1.) THE short point which arises for consideration in this appeal is whether the Tribunal was right in limiting the scope of determination of undisclosed income under Chapter XIV B of the IT Act, 1961, to the material found during the course of search under S. 132 of the Act.

(2.) THE brief facts giving raise to this appeal are as follows : On 28th Sept., 1995, the premises of the assessee was searched. Thereafter, the assessee filed his return declaring undisclosed income of Rs. 10,54,383 for the block period 1984 1996. On the basis of material found during the search, the AO finalised the assessment on 30th Sept., 1996, on total undisclosed income of Rs. 24,66,850 for the above block period. Being aggrieved, the assessee filed an appeal to the Tribunal, who reduced the income to Rs. 13,32,120 as against the declared income of Rs. 10,54,383. The addition made by the AO on account of unexplained gold ornaments, investment in bungalow and unexplained household expenses came to be deleted by the Department. Hence, this appeal.

(3.) FOR the above reasons, question Nos. 4 and 5 are also answered accordingly, in the affirmative i.e., in favour of the assessee and against the Department.