TMI Blog2003 (1) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... ti Mani Block,AsianGamesVillage,New Delhi. The assessee-company entered into a contract on 15th April, 1985, with another non-resident foreign company M/s GEC Turbine Generators India Ltd. (GECTGIL) for all the work to be performed in India for the setting up of coal-based thermal power plant at Korba as a captive power station for BALCO s aluminimum complex on turnkey basis. A search and seizure operation was conducted at the premises of M/s GECTGIL. During the search, certain pay slips were found and seized by the Department. On a later stage the search was also conducted at the premises of the assessee. However, no incriminating documents were found during the search operation from possession of the assessee. During the assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other material was brought on record, which could establish that the assessee has not recorded expenditure incurred by it. Alternatively, it was submitted that assuming that assessee has incurred any expenditure on salary, that expenditure has to be allowed as business expenditure. The CIT(A), after considering the submissions and perusing the order material on record, was of the view that AO was justified in making the additions. While observing so, the CIT(A) has observed in his order that even when an incriminating document or evidence is found by the AO elsewhere, the same becomes relevant and can be relied. Therefore, the documentary material found elsewhere can also be quite relevant in the assessment proceedings of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for so many times to supply the copies of the slips found from the premises of the third party. Attention of the Bench was invited on the copies of the appications filed before the AO, which are placed in the paper book at pp. 12 to 15. The attention of the Bench was also drawn on copies of account of salaries paid by the assessee to the expatriates and it was submitted that all the salaries were paid through account payee cheques to these expatriates. Further, the contentions raised before the lower authorities were reiterated. 6. On the other hand, the learned Departmental Representative placed reliance on the orders of the authorities below. 7. We have considered the rival submissions and have perused the relevant material on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,New Delhi. Inspite of repeated requests of the assessee, the Department could not supply the copies of the slips found during the course of search from a third person. Without confronting the material, on which the reliance was placed by the AO, no adverse inference can be drawn against the assessee. As we have already stated that even the Department could not produce the relevant material before the Tribunal inspite of several opportunities allowed to them, therefore, we are not hesitant in accepting the plea of the assessee that without confronting the material, on which the Department is relying upon, no additions are possible. We have also seen further that whatever salaries were paid by the assessee, they are accounted for in the regu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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