The Tax Publishers2013 TaxPub(DT) 1453 (Mad-HC) : (2013) 051 (I) ITCL 0517 : (2013) 350 ITR 0694

INCOME TAX ACT, 1961

--Search and seizure --Block assessment Computation of undisclosed income--Assessing officer issued notice under section 158BC and completed block assessment for the block period determining undisclosed income of assessee. Being aggrieved, the assessee filed appeal before Tribunal. Tribunal set aside the order and directed assessing officer to redo the matter after giving opportunity to assessee. Held: assessing officer was not justified as Tribunal on the basis material evidence had found that assessee had established the source of fund from where it was collected, produced affidavits and confirmation letters from party headquarters. Further, revenue failed to prove that the assessee collected donations from any other source, other than the party workers. The findings of Tribunal were based on valid material and evidence and addition was therefore rightly deleted by Tribunal.

Income Tax Act, 1961 Section 158BC

In the Madras High Court

D. Murugesan & P. P. S. Janarthana Raja, J.J.

CIT v. M. Chinnasamy

Tax Case (Appeal) Nos. 799 & 1202 of 2005

A.Y. Block Period : 1987-88 to 1997-98

12 March, 2012

Income Tax Act, 1961, S. 158BC

Decision: In assessees favour.

Appellant by : K. Suresh Kumar

Respondent by : V. S. Jayakumar

JUDGMENT

P. P. S. Janarthana Raja, J.

The Revenue has filed the present appeals against the order of the Income Tax Appellate Tribunal under section 260A of the Income Tax Act, 1961, raising the following questions of law :

T. C. (Appeal) No. 799 of 2005

'1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that donations to the tune of Rs. 75 lakhs made by the assessee to the All India Anna Dravida Munnetra Kazhagam could not be included in the undisclosed income of the block period ignoring the relevant materials like absence of any list of donors at the time of search, the list furnished later on not showing the addresses and identity of the donors and the unreliable nature of the affidavits filed and relying on irrelevant material like the improbability of the assessee having earned such income in the absence of any specific source, without taking into consideration the provisions of sections 68, 69 and 69A of the Income-tax Act ?

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