COMMISSIONER OF INCOME TAX Vs. KANTILAL PRABHUDAS PATEL

JUDGEMENT

(1.) SHRI R.L. Jain, senior advocate with Ms. Veena Mandlik, advocate, for the appellant.

(2.) HEARD on admission.

(3.) LEARNED senior Counsel submits that in the search made in the premises of the assessee a number of documents were found which disclosed certain hawala transactions in which the assessee has made income which he had not disclosed in his return for the block period April 1, 1989, to August 18, 1999. Accordingly, on the basis of the said entries, the Assessing Officer made an addition of Rs. 55 lakhs which was affirmed by the Commissioner of Income -tax (Appeals), but, the Tribunal on further appeal deleted the said addition. Learned Counsel has pointed out that the Assessing Officer had even given reasons for making the addition of Rs. 55 lakhs, but, the Tribunal capriciously deleted the same. In this context the following question of law has been formulated by the Department: Whether, on the facts and in the circumstances of the case and in law the Income -tax Appellate Tribunal was justified in holding that no estimation of hawala business income can be made for the whole period or 18 months or 450 days on the basis of documents seized during the course of search?