Eagle Seeds & Biotech Ltd. v. Asstt. CIT
INCOME TAX ACT, 1961
Search and seizure - Block Assessment -Undisclosed income
Assessee-company was engaged in production, processing and marketing of seeds. In course of search upon R, certain incriminating documents, showing payments received from assessee on various dates in cash or bearer cheque, were seized. Assessee explained that as per trade practice, payment was made by it to parties who produced Beej Prapti Receipt. AO rejected assessees explanation and impugned payments to R was treated as an unaccounted purchase of seeds and thereupon, made addition on account of undisclosed income. Held:Since, assessee had disclosed all payments and purchases in its books of account and no material was recovered during course of search to point out that assessee had made unaccounted purchases, therefore, addition made by AO was not justified.
Income-tax Act, 1961, Section 158B
A.Y. :1-4-1996 to 5-6-2002
Decision: In favour of assessee
Case Law Analysis:CIT v. M.K. Brothers [1987] 163 ITR 249 / 30 Taxman 547 (Guj.) (para 9), Asstt. CIT v. Prabhat Oil Mills [1995] 52 TTJ (Ahd.) 533 (para 9), Chiranjilal Steel Rolling Mills v. CIT [1972] 84 ITR 222 (Punj. & Har.) (para 9), M.A. Unnerkutty v. State of Kerala[1979] 44 STC 94 (Ker.) (para 9), ITO v. Balaprasad R. Lokmanyawar [1984] 18 TTJ (Pune) 167 (para 9), Smt. Neena Syal v. Asstt. CIT [1999] 70 ITD 62 (Chd.) (para 9), CIT v. Naresh Khattar (HUF) [2003] 261 ITR 664/ 130 Taxman 15 (Delhi) (para 9), CIT v. Rameshwar Prasad Bagla [1968] 68 ITR 653 (All.) (para 9), Dhirajlal Girdharilal v. CIT [1954] 26 ITR 736 (SC) (para 9),