P. Mohanarajan, Judicial Member - (1.) THIS appeal is by the assessee directed against the assessment order dated 31-9-1997 under Section 158BC of the Income-tax Act, 1961, hereinafter referred to as Act.
(2.) We have heard both the sides and perused the records. A search was conducted on 12-1-1996 to 20-1-1996 at the premises of the assessee and the residential premises of the members of the HUF, which resulted in the seizure of the following assets :- Found Seized Cash 1,36,869 75,000 Jewellery 72,681 Nil Stock 1,05,26,150 13,45,960 The assessee (HUF) derives income from business. Head office is located at Baldeobag and the branches are at Marhatal and Ranjhi at Jabalpur. The branches at Chhindwara and Kareli were closed earlier. The assessee deals in tractors, trax, agricultural equipments, TV and Refrigerators, Automobile, Two-wheelers, Diesel, Petrol and other consumer durable products. A notice under Section 142(1) was issued to the assessee for making a block assessment for A.Y. 85-86 to 95-96 and 1-4-95 to 12-1-96. A questionnaire was also issued. The assessment proceeding was commenced on 13-12-96 and completed on 29-1-97 (copy of A.O. adjudication pages 1 to VII of Paper Book). The assessee had filed replies dated 13-12-96, 21-12-96, 30-12-96, 2-1-97, 2-1-97, 6-1-97, 6-1-97, 7-1-97, 9-1-97, 17-1-97, 20-1-97 and 20-1-97 before the Assessing Officer for the queries raised for every additions made in the assessment order.
(3.) THE value of stock and jewellery and the cash seized during search as undisclosed income of the assessee has been treated as explained by the assessee and the Assessing Officer had passed orders accordingly.;