ARVIND JANARDHAN PANDEY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) Both these appeals are filed by the assessee to challenge the common judgment of the Income Tax Appellate Tribunal. The question framed by the assessee would suggest that the appellant assessee is disputing the various additions made by the assessing officer in the hands of the assessee which were confirmed by the CIT (Appeals).

(2.) We have heard the learned Senior Counsel for the appellant assessee at considerable length. The facts that emerge from the Appeal is that the income tax authority had carried out search operation on various premises of the assessee during which incriminating documents were impounded and seized. These documents included a diary. Statements of the assessee were also recorded. One Sonal Parag - the associate of the assessee was also subjected to search, during search a diary was found. These diaries contained entries in relation to the cash receipts and payments by the assessee. The assessee was engaged in the activity of securing admissions for students in various academic institutions upon payment of capitation fees in cash. The seized diaries contained various entries of payments allegedly made by the assessee to various educational institutions for such purpose. During search operation the assessee was confronted with the entries in the diaries. The assessee admitted several important aspects including the factum of payments made as suggested in the diary and that the assessee was not maintaining any books of account where such transactions were recorded.

(3.) The assessing officer during post search inquiries, sent several notices to the assessee and called for various details such as full name and address of the students on whose behalf such amount was collected and paid over to the educational institutions. In the order of assessment, the assessing officer has recorded that the assessee did not supply such information and had adopted non-co-operative approach. The assessing officer eventually carried out estimation of what would be the assessee's income out of such activity and made additions for both the assessment years which became subject matter of the appeals before the appellate commissioner.