COMMISSIONER OF INCOME-TAX Vs. BIMAL AUTO AGENCY

JUDGEMENT

(1.) Out of the several substantial questions of law framed at the time of admission of this appeal, two questions have been urged by the appellant at the hearing. The first relates to the addition of Rs. 40,04,369 made by the Assessing Officer in a block assessment order dated November 21/2000, under Section 158BC and Section 143(3) of the Income -tax Act. The block period covered the assessment years 1989 -90 to 1999 -2000. The said addition having been deleted by the learned Commissioner of Income -tax (Appeals) and the said order having been affirmed by the learned Tribunal by the impugned order dated July 18, 2006, the instant appeal has been filed under Section 260A of the Income -tax Act, 1961, hereinafter referred to as 'the Act'.

(2.) THE second issue pressed at the hearing relates to another addition made by the Assessing Officer in respect of a sum of Rs. 14,98,282 on account of disallowable travelling expenses incurred through credit cards recovered in the course of search. The said addition having met a similar fate at the hands of the appellate authority and the learned Tribunal below, the findings of the said authorities have been challenged in the instant appeal.

(3.) IN so far as the addition of disallowable allowance is concerned, the amount of expenditure involved was admittedly shown by the assessee in its books of account. However, on the ground that the explanations furnished by the assessee with regard to the aforesaid expenditure was not satisfactory, the said amount of Rs. 14,98,282 was also assessed as undisclosed income of the assessee for the block period in question. Both the aforesaid additions, as already noticed, had been deleted by the two appellate authorities below.