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[2008] 305 ITR 128 [2007] 161 TAXMAN 21 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Sanjeev Kumar Pandhi * v. Commissioner of Income-tax-I, Jalandhar ADARSH KUMAR GOEL AND RAJESH BINDAL, JJ. IT APPEAL NO. 672 OF 2005 OCTOBER 10, 2006 Section 69 of the Income-tax Act, 1961 - Unexplained investments - Assessment year 2000-01 - During assessment assessee admitted investment of Rs. 3,80,000 for construction of Air Pollution Control Device and surrendered additional income of Rs. 1,50,000 - Assessing Officer observed that assessee could not justify investment and added surrendered amount in income of assessee - Tribunal held that as Assessing Officer himself computed difference in investment as estimated/reported at time of survey and at time of assessment to extent of Rs. 1,18,000, Assessing Officer could have made addition of Rs. 1,18,000 even if assessee surrendered Rs. 1,50,000 - Whether Tribunal was justified in doing so - Held, yes FACTS The assessee was engaged in the business of brick kiln. He filed return for the assessment year 2000-01. On 3-3-2000, a survey under section 133 was carried out at the business premises of the assessee and inventory of stocks of bricks, coal and wood was prepared. The assessee admitted investment of Rs. 3,80,000 for construction of Air Pollution Control Device (Chimney) (APCD). The Assessing Officer observed that the assessee could not justify the said investment for construction of APCD and offered additional income of Rs. 1,50,000. Accordingly, surrendered amount was added to the income of the assessee. On appeal, the Commissioner (Appeals) upheld the addition made by the Assessing Officer. The Tribunal observed that the Assessing Officer computed difference in investment as estimated/reported at time of survey as well as at time of assessment in a sum of Rs. 1,18,000. The Tribunal, therefore, held that the Assessing Officer could have made addition of Rs. 1,18,000 even if the assessee surrendered Rs. 1,50,000, as there was no basis whatsoever to make addition of Rs. 1,50,000 against the assessee on admission because the admission of the assessee was as regards Rs. 1,50,000 which was not corroborated by any material…

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