TMI Blog2010 (1) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... rrived at by the Assessing Officer - That provision has also retrospective application from 1-7-1995. As the search was conducted on 28-11-2002 and on which date the statement of R. Shanmugasundaram was available with the Assessing Officer, he is entitled to rely on the said statement as well, as it is relatable to evidence - Since the same was shown in the return after search, the statement relating to the deposit was not accepted by the Assessing Officer - Similar is the case of the statements of other creditors as well. This being a question of appreciation of evidence, we are not inclined to go into the question, particularly when this finding was accepted by both the CIT(A) as well as the Tribunal - Decided against the assessee - 1157 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , though the assessees are different, the issues raised are common. Hence, they are taken up together for disposal. 3. For the purpose of appreciation of facts, we may refer the facts relating to tax Case (Appeal) No. 1157 of 2009. The assessee is a partnership firm consisting of 12 partners. It is engaged in finance business. On 28-11-2002, a search was conducted under section 132 of the IT Act, 1961 in the business premises at door No. 207, Salem Road, Namakkal. During the course of search in one of the group concerns viz., M/s. Lakshmi Finance, one Shri Arthanareeswaran, a customer, who came to repay the loan was interrogated and he stated that he had taken a loan of Rs. 3,00,000 from M/s. Jai Investments, one of the sister concerns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors. Out of those creditors, eight have given statements. Their statements disclosed that they had not made any investment as claimed by the financial concern. In these circumstances, notice under section 158BC(a) of the Act was issued and after receipt of the response, the Assessing Officer found that there were enough evidence to hold that there was undisclosed income for various years and accordingly, he computed the amount of tax to be levied. Accordingly, he passed the assessment order dated 30-11-2004. That order was taken on appeal before the CIT(A)-II, Coimbatore, and the same was confirmed by order dated 13th March, 2006. Further appeal to the Tribunal also visited the same result as the Tribunal has also dismissed the case. Questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epted on the ground that no materials were made available in support of their statements. Hence no interference is called for against the proceedings under challenge. 9. We have considered the respective submissions. As far as the first submission of the learned counsel for the appellants is concerned, it is true that the statements were recorded from the manager Shri R. Shanmugasundaram on 14th Nov., 2002 much prior to the search, which was conducted on 28-11-2002. Section 158BB(1) was added (sic - amended) w.e.f. 1st July, 2002. In terms of the said section a provision for placing reliance on materials relatable to such evidence is also added. By that addition, it could be seen that whatever materials, which are available on the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve concerns. This being the factual finding, we find no substantial question was involved. That apart, we may even refer to one of the statements of rest of the creditors by name S. Rajendran. He is related to R. Appusamy. Though he claimed deposit of Rs. 16,000 at Sri Lakshmi Finance on 23-3-2000 and got back Rs. 18,460 on 26-9-2003, he had not shown it in his income-tax statement. He had shown only in the IT return for the assessment year 2003-04, which was filed on 31st March, 2004 after search. Since the same was shown in the return after search, the statement relating to the deposit was not accepted by the Assessing Officer. Similar is the case of the statements of other creditors as well. This being a question of appreciation of evide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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