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2013 (3) TMI 270 - MADRAS HIGH COURTAdditions to turnover & profit computed in reassessment - whether the additions can be made solely based on the information received in the course of search conducted by totally ignoring the sales tax return filed by the assessee and accepted by the sales tax Authorities - Held that:- As decided in Commissioner of Income-Tax Versus Anandha Metal Corporation [2004 (7) TMI 49 - MADRAS HIGH COURT] unless and until the competent authority under the Sales Tax Act differs or varies with the closing stock of the assessee, the return accepted by the Commercial Tax Department under the TNGST Act is binding on the Income Tax Authorities and the AO, therefore, has no power to scrutinise the return submitted by the assessee to the Commercial Tax Department and accepted by the said authorities. AO has no jurisdiction to go beyond the value of the closing stock declared by the assessee and accepted by the Commercial Tax Department. In this case Tribunal, therefore, rightly found that the Department could not have made the addition merely on the basis of the statement of third parties - in favour of assessee. Insofar as the assessment year 2002-03 is concerned, no materials seemed to have been placed by the assessee viz., the sales tax returns for the said year before the authorities below . Even the Tribunal in its order has not referred to the sales tax return filed by the assessee and the order passed therein in respect of the assessment year 2002-2003. Thus the Tribunal ought not to have allowed the appeal in respect of the assessment year 2002-2003 also - matter is remitted back to the Assessing Officer to find out as to whether any sales tax return has been filed by the assessee in respect of the assessment year 2002-2003 and to pass a revised assessment order - in favour of assessee for statistical purposes..
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