CHAIN SUKH RATHI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE appeal was admitted in terms of the following questions :

(2.) THE search and seizure under s. 132 of the IT Act, 1961, was carried out at the business premises of M/s Rajan Products and residential premises of its partners. At the time of the search cash book and ledger belonging to the assessee were also seized from the premises. THEreafter notice issued under s. 142(1) r/w s. 158BD on 12th Aug., 1998. In compliance of the said notice, the assessee filed `Nil' return for the block period in question i.e., 1986-87 to 1996-97. He computed total undisclosed income to the tune of Rs. 12,27,958. THE assessee has challenged the order of the AO. THE Tribunal after considering the material on record, sustained the addition of Rs. 2,28,080 on account of unexplained capital of Smt. Gayatri Devi in the year 1995-96. Second addition of Rs. 1,03,965 sustained on account of unexplained accretion in capital of Smt. Gayatri Devi and alleged bogus cash creditors. Third addition was on account of unexplained capital of Shri Chain Sukh Rathi to the tune of Rs. 1,78,882. Fourth addition was Rs. 5,94,000 on account of low household expenses shown in the block period. Last addition was Rs. 30,000 on account of unexplained gift from father.

(3.) THE other addition has been made in respect of unexplained capital of Smt. Gayatri Devi. THE capital of Rs. 2,28,080 has been introduced in the name of Smt. Gayatri Devi, wife of the assessee. This addition has been made on the basis of statement of Smt. Gayatri Devi Rathi, wife of assessee, which was recorded during the search in the year 1995-96 as she could not explain the source. THE only source, which can be visualized is that amount has been received from her husband or husband has introduced this amount in the name of his wife Smt. Gayatri Devi. THErefore, again we see no perversity in the finding of Tribunal. THE Tribunal has rightly added this amount of Rs. 2,28,080 in the income of the assessee.