Case Law Details
Facts of the case
The assessee is an individual engaged in the business of trading in scrap. Search and seizure operations u/s. 132 of the Act were conducted on 07-11-2007. Subsequently, notice u/s. 153A was issued calling upon the appellant to file the return of income. In response to which, the appellant filed return of income on 25-09-2009 disclosing income of Rs. 4,11,320/-. Against the said return of income, assessment came to be completed u/s. 143(3) r/w 153A of the Act vide order dt. 30-11-2009 at a total income of Rs. 1,17,18,320/-. While doing so, the AO made addition of Rs. 1,12,57,000/- by holding that the appellant had advanced sum of Rs. 1,12,57,000/-as loan. The addition is made based on the blank cheques and promissory notices obtained. The AO had concluded that the appellant is engaged in money lending business and advanced a sum of Rs. 1,12,57,000/- and made addition of amount as unexplained investment.
Question of Law
Whether revenue was justified in making additions due to seizure of blank cheques during search and termed it as unexplained investments?
Contention of the Assessee
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