Law:

Section:

Section 68, read with sections 69 and 158BC, of the Income-tax Act, 1961 - Cash credits - Block period 1988-89 to 1998-99 - Whether additions under sections 68 and 69 are permitted in assessment under section 158BC and what is to be done by Assessing Officer is to make assessment only in terms of provisions of Chapter XIV-B - Held, yes - In a search conducted at assessee's premises, department detected massive investments made by him in 23 items of property including construction of a house - Assessee furnished cash flow statement, but same was not accepted in full and Assessing Officer made additions towards unexplained investments and expenditure - On appeal, Commissioner (Appeals) gave substantial relief to assessee - On second appeal, Tribunal deleted almost all additions except two additions in respect of which borrowers did not prove transactions of advances made to assessee and assessee could not prove even substantial amounts of withdrawals from his own account - Whether on facts, Tribunal's order was to be upheld - Held, yes P. Balakrishnan for the Appellant. P.K.R. Menon and George K. George for the Respondent. JUDGMENT Ramachandran Nair, J. - This appeal is filed by the assessee against the order of the Tribunal partly confirming and partly cancelling CIT (Appeals)'s order on the block assessment completed on the appellant-assessee for the period commencing from 1988-89 to 1998-99. A search was carried out in the premises of the assessee, a non-resident Indian, on 30-9-1997. In the search department detected massive investments made by the assessee in 23 items of property including construction of a house. Cash flow statement was called for by the Assessing Officer to prove the investments and expenditure. Even though assessee furnished the same, it was not accepted in full. The Assessing Officer made addition towards unexplained investments and expenditure. On appeal filed by the assessee, substantial relief was granted by the CIT (Appeals) inasmuch as he reduced one item of addition of Rs. 9,90,000 lakhs to Rs. 5,57,500. So far as addition on account of cash credit is concerned, the amount assessed at Rs. 16.25 lakhs was reduced by the CIT…

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