IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR.

BEFORE: DR. S. SEETHALAKSHMI, JJUDICIAL MEMBER &

SHRI RATHOD KAMLESH JAYANTBHAI, ACCOUNTANT MEMBER I.T.A. No. 82/Jodh/2015 Assessment Year: 2006-07

Appellant by Smt. Raksha Birla, C.A.

Respondent by Shri Shilendra Sharma, CIT- DR Date of Hearing 23.01.2024 Date of Pronouncement 17.04.2024

ORDER

Per:DR. S. Seethalakshmi, JM:

This appeal filed by assessee is arising out of the order of the Learned Commissioner of Income Tax (Appeals), Jaipur dated 26.02.2015 [here in after “ld.CIT(A)”] for assessment year 2006-07 which in turn arise from the order dated 11.12.2009 passed under section 153 r.w.s. 143(3) of the Income Tax Act, by the AO, Jodhpur.

2. In this appeal, the assessee has raised following grounds: -

“1. That on the facts and in the circumstances of the case and in light of material placed' on record the Id CIT (A) grossly erred in sustaining an addition of Rs.

3,22,500/- as unexplained investment and interest thereon in the name of "Thar".

2. That on the facts and in the circumstances of the case the Id CIT (A) grossly erred in not accepting the explanation of the appellant based on the entries recorded in the same seized diary explaining the source of investment.

3. Without prejudiced to the above and in the alternative: -

a] That when all the assets found at the time of search including debtors and expenditure are considered and assessed in the assessment year 2008-09 than no.

separate addition is called for in the year under consideration.

b] That if the ld AO made the addition and is sustained by the Id CIT (A) than the Id CIT (A) ought to have directed the AO to considered the source to the extent of amount available as return of money from "Thar" against the additions made in respect of investment for the assessment year 2008-09.

c] That the Hon'ble Tribunal may issue suitable direction to allow set of for this amount in the assessment year 2008-09 in respect of addition made and sustained in respect of investment in form of debtors to avoid double taxation.

4. That the petitioner may kindly be permitted to raise any additional or alternative grounds at or before the time of hearing.

5. The petitioner prays for justice & relief.”

3. Brief fact of the case is that search u/s 132 of the I. T. Act, 1961 was conducted in this case on 25.03.2008 to 27.03.2008. Subsequently notice u/s 153A was issued on 12-09-2008. In response to that notice return of income was filed on 27-01-2009 declaring income of Rs. 2,78,880/- the case was selected for scrutiny as per guidelines of the Board. The case was fixed for hearing on various dates. The assessee is drawing income from salary, business as well as income from other sources. The assessee had originally filed return of income on 28-07-2006 in which the assessee had not declared any income under the head business income. However, in the return filed u/s 153A of the Act he has shown business income amounting to Rs. 77,593/-. As per Annexure A-11 seized from the residence of Shri Ummaid Mal Singhvi during the search on 25.03.2008 at page no. 7 it is written that the assessee had received interest relating to various assessment years out of which interest amounting to Rs. 30,000/- relates to this assessment year which has not been declared by the assessee in the books of accounts. Similar entries have been found in the pocket diary found and impounded at the business premises of Sidhartha on which survey u/s 133A was conducted on 25.03.2008. This diary also belongs to Shri Ummaid Mal Singhvi as the same has been written in his own hand and contains most of the entries, which were found in annexure A-11 seized from the residence of Shri Ummaid Mal Singhvi. This point was raised with the counsel and he submitted reply on 07.12.2009 the reply reads as under:-

"The transaction at page no. 9 &