COMMISSIONER OF INCOME TAX Vs. AJAY KUMAR SHARMA

JUDGEMENT

(1.) THIS appeal has been admitted in terms of the following questions :

(2.) A search and seizure operation was carried out under Section 132 of the Income-tax Act, 1961, on August 2, 1996, at the business premises of Om Shanti and Sons, Bapu Bazar, Jaipur, Marcopolo, Choudhary House and at Rajdeep Hotel, Bapu Bazar, Jaipur. During the course of search incriminating documents and loose papers pertaining to the assessee, Ajay Kumar Sharma, partner of Holiday India Travels "N" Tours, were seized.

(3.) HEARD learned counsel for the parties. Mr. Singhi, learned counsel for the Revenue, submits that when the cash credits are not genuine, the Assessing Officer has rightly taxed that amount in the hands of the assessee. He placed reliance on the decision of the Calcutta High Court in the case of CIT v. Korlay Trading Co. Ltd. [1998] 232 ITR 820. He further submits that even if the cash credits have been shown in the cash books, unless that has been disclosed as income in the relevant assessment years, that can be taxed in the block assessment year treating that income as undisclosed income of the assessee.