Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2007 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (12) TMI 321 - AT - Income TaxAssessment u/s 153A - Unexplained moneys - search operation under section 132 - Addition on account of suppressed turnover - basis of assumption and surmises - Estimated profit after rejecting the book result - HELD THAT:- No material was also found to indicate that there was any suppressed production in the aforesaid assessment years. The Assessing Officer finding that material was seized relating to the assessment year 2004-05 in the search indicating suppressed production and sales existed in the assessment year 2004-05, on the basis of this, he presumed that there might have been suppressed production and sales in the assessment years 2000- 01 to 2003-04 also. Hence, he taking the consumption of electricity as basis and on the further assumption and presumption arrived at some suppressed production and sales for the said assessment years. It is not in dispute that no defect in the books of account maintained for the aforesaid years was found. In absence of any material being found during the search relevant to the aforesaid assessment years, in our considered opinion, the learned CIT(A) was justified in deleting the addition made for these years only on the basis of assumption and surmises. We do not find any error in the order of the learned CIT(A) insofar as he rejected the estimate of suppressed sales by the Assessing Officer. Further, the rate of profit assumed by the learned CIT(A) being more than the rate of profit estimated by the Assessing Officer, the Revenue cannot have any grievance against the same. Thus, the learned CIT(A). It is confirmed and the ground of appeal of the Revenue is dismissed. The Revenue has not brought any material on record to corroborate the finding of the Assessing Officer for suppressed production and sales merely on the basis of variation in electricity consumption. The revenue has also failed to point out any specific error in the order of the learned CIT(A). Therefore, the findings of the learned CIT(A) which is confirmed and the grounds of appeals of the assessee are dismissed. Protective addition - Cash seized during search - We find that during the course of search cash was seized from the residence of Shri Dilip Jani, who was also a director of the assessee-company. The said director accepted the ownership of the said money, shown the same as his income in the return which was subsequently filed and paid tax thereof. The Revenue could not bring any material before us to show that the said cash was the property of the assessee-company. Hence, the order of the learned CIT(A) which is confirmed and the grounds of appeal of the revenue are dismissed. In the result, the appeals of the Revenue are dismissed.
|