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Section 68 of the Income-tax Act, 1961 - Cash credits - Block period 1-4-1987 to 6-11-1997 - On search, revenue found certain cash vouchers of Rs. 1.56 crores representing construction expenses of farm house - Assessee surrendered an amount of Rs. 86.79 lakhs and in respect of balance amount of Rs. 70 lakhs, assessee contended that said amount represented reserve fund of one company 'M' - On appeal, Tribunal after noting details of accounts maintained by assessee concluded that cash in from of reserve fund was available to assessee, which represented amounts belonging to company 'M' - Whether findings recorded by Tribunal did not call for any interference and no substantial question of law arose out of order passed by it - Held, yes ORDER 1. The revenue is aggrieved by an order dated 26-8-2005 passed by the Income-tax Appellate Tribunal, Delhi Bench "E" in IT(SS)A Nos. 136-138/Delhi/2000 relevant for the block period 1-4-1987 to 6-11-1997. 2. It appears that a search operation under section 132 of the Income-tax Act, 1961 was conducted at the residential and business premises of the assessee on 6-11-1997. During the search, cash vouchers showing requirement of material etc. in connection with the construction of a farm house in Rajokari were seized. As per the documents available, the total expenditure on construction of the farm house as on the date of the search amounted to Rs. 4.88 crores. Out of this amount, a sum of Rs. 3.31 crores was booked in the accounts during the date of search. The balance amount of Rs. 1.56 crores represented the amount for which cash vouchers were found during the search. 3. Out of the balance amount of Rs. 1.56 crores the assessee (Deepak Seth) surrendered an amount of Rs. 86.79 lakhs and the expenditure with regard to the balance amount of Rs. 70 lakhs is what is in dispute. This amount was said to represent the reserve fund of M/s. Mina Exports Ltd. 4. The Income-tax Appellate Tribunal noted that during the search, a day book which is annexure A-3 was seized. The Tribunal also noted that the details of the accounts mentioned in the day book showed that two different balances were maintained: one representing cash kept in the…

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