L.NARASIMHA REDDY, J. - (1.) THIS appeal under Section 260 -A of the Income Tax Act, 1961 (for short the Act) is preferred against the order dated 28.04.2004 passed by the Hyderabad Bench A of the Income Tax Appellate Tribunal (for short Tribunal) in IT(SS)A No.123/HYD/2003. The assessee is the appellant.
(2.) THE premises of the appellant was searched on 19.01.2001 by the officials of the Income Tax Department in exercise of power under Section 132 of the Act. A receipt evidencing payment of a sum of Rs.10,00,000/ - to one Mr. Prabhakar Reddy is said to have been discovered. Another receipt evidencing repayment of that very amount was also discovered. A statement under sub -Section (4) of Section 132 of the Act is also recorded on the day of search. When a question was put to the appellant as to whether he has made any payment to one Mr.Prabhu, he gave answer in a negative.
(3.) THEREAFTER , a further statement was recorded on 27.03.2001. A question was put to the appellant as to whether he paid a sum of Rs.10,00,000/ - to Mr. Prabhakar Reddy. The appellant accepted that he paid that amount to Mr.Prabhakar Reddy on 25.11.2000 for purchasing of a plot. He further explained that the deal did not fructify, and as such, the amount of Rs.10,00,000/ - was returned to him on 30.11.2000. The case of the appellant was that the amount is from the funds of M/s.Sapta Sikhara Housing Private Limited (for short the company) in which he himself and his family members have substantial stake. The Assessing Officer passed an order of Block Assessment on 31.01.2003 adding a sum of Rs.10,00,000/ - to his income and levying tax as provided for under Chapter 14B of the Act. The appellant filed an appeal before the Commissioner of Income Tax (Appeals) -I, Hyderabad. The same was dismissed on 22.08.2003. Thereupon, he filed an appeal before the Tribunal and that was also dismissed on 28.04.2004.;