Chandra Poojari, Accountant Member - The above two appeal by the assessee are directed against the common order of the CIT(A)-I, Hyderabad dated 8th October, 2009 for assessment years 2002-03 and 2003-04. Since common issue is involved both the appeals are clubbed together, heard together and are being disposed of by this common order for the sake of convenience.

2. Brief facts of the issue are that a search and seizure operation u/s. 132 of the Income-tax Act, 1961 was conducted in the NAREDI group of cases in the course of which the residential and business premises of the assessee were also covered. Consequent to the search, the assessee filed returns of income for A.Y. 2002-03 declaring income of Rs. 2,83,650 and for A.Y. 2003-04 at Rs. 3,44,700. After examining the books of account and seized materials the Assessing Officer completed the assessments determining income at Rs. 5,38,900 for A.Y. 2002-03 and Rs. 8,53,282 for A.Y. 2003-04. As the assessee had not disclosed the income from bill discounting correctly the Assessing Officer had made addition of Rs. 2,55,248 and Rs. 5,08,582 in the A.Ys. 2002-03 and 2003-04, respectively. Consequently penalty proceedings u/s. 271(1)