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2014 (1) TMI 284 - ITAT COCHINReopening of Assessments u/s 147 of the Act – Regular Return filed or not – Remittances made to father – Both Revenue and Assessee made appeal - Held that:- The entire net turnover, after deducting the expenses was remitted to the assessee's father, Shri E Shamsuddin at Edappallykotta - If the entire net turnover was remitted after deducting the expenses, then what is the profit element left in the hands of the assessee - Whether the assessee is transferring the profit to his father as application of funds or he is conducting the business as an agent of his father - Thus, it has to be ascertained whether Shri E Shamsuddin was doing business at different places through his sons and relatives - If that is so, the profit has to be assessed only in the hands of Shri E Shamsuddin – the Tribunal could not decide the issue in the absence of any material on record - The material found during the course of search operation and the statement recorded u/s 132(4) of the Act is not available on record - on the basis of mere oral and written submission, the Tribunal is not in a position to determine at whose hands the profit has to be assessed. The CIT(A) has restricted the turnover ignoring the seized material which discloses huge remittances by the assessee - the seized material and the statement recorded u/s 132(4) of the Act in the course of search operation in the premises of Shri E Shamsuddin are relevant factors to be considered - It is also necessary to confront the assessee with material found during the course of survey and search operation and the statements recorded during the course of those proceedings – the matter remitted back to the AO for fresh adjudication – decided in favour of Assessee and Revenue.
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