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2014 (3) TMI 217 - HC - Income TaxMaterials detected during search Basis of Best judgement assessment - Whether the Tribunal gone wrong in not considering the aspect as to whether materials detected in a search conducted u/s 132 of the Act in the business premises of another assessee could be a reason or basis for best judgment assessment against the assessee - It is clear that in the pre-search enquiry and course of search proceedings the information collected was mostly with reference to assessment year 2008-09 - the information gathered during the search proceedings with reference to Commercial Tax department pertains to 2006 - Inspection by Commercial Tax department was on 24.02.2006 - Commercial Tax department also found similar deficits in the maintenance of accounts and the records by the appellant assessee - Commercial Tax Department also opined, sales bills were not issued for the entire sales made by them though estimate slips was prepared for the actual sales. Initiation of proceedings u/s 153A of the Act - Whether the material recovered on 21.08.2007 and also other information during the course of search could be the material for previous six years to initiate proceedings under Section 153A of the Act Held that:- Though the estimate slip reflects the actual purchase and sale of gold made in the business concerns of appellant assessees, the sale bill was always for lesser quantity than the details reflected in the estimate slip - By this process actual sales were not reflected was the information gathered during 2006 by the Commercial Tax Department - Search was in 2007 - There was material in black and white at least for these two years thus, there was enough information and material to presume the nature of accounting and also modus operandi in maintaining the records by the assessee - Relying upon Commissioner of Income-tax Versus Hotel Meriya [2010 (5) TMI 556 - Kerala High Court] none of the provisions under Chapter XIVB mandates, for making block assessment there shall be evidence regarding the concealment of income for every year for the block period. There is no prohibition or embargo on the department to consider this information for assessment or reassessments contemplated under Section 153A - There is also no requirement under Section 153A and other provisions requiring the department to collect information and evidence for each and every year for the six previous years under Section 153A - As there was no explanation called for from the assessees, so far as the materials collected from statement of the employees of the assessee and also the other material, in all fairness - the Tribunal exercised its jurisdiction with all magnanimity in remitting back the matter to the assessing officer giving opportunity to the assesees to explain and substantiate their stand before the assessing authority - This would mean that the assessee has one more opportunity to convince the department regarding their stand by explaining the controversies raised by the department based on the information gathered by them during the search there was no reason to interfere in the decision of Tribunal Decided against Assessee.
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