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2017 (6) TMI 955 - HC - Income TaxAddition on account of alleged premium on alleged cash sales - presumptions u/s 132(4A) - Held that:- The entire issue was based on appreciation of evidence on record. Though the Assessing Officer had proceeded on the basis of certain statements made by Shri Balkrishna Devidayal, who had not appeared for cross-examination, the Tribunal noted that subsequently cross-examination was offered and carried out, but no contrary evidence came on record. This is, therefore, not a case where the additions are made on the basis of mere loose papers seized during search. It is a case where the documents seized during search contained entries made by the partner of the firm admittedly in his own handwriting and contained reference to the cash receipts. His explanation was simply either non-existent or not acceptable. With respect to M/s.Jhaveri Polymers, however, the case stands on a slightly different footing. The primary reason for adding such sales for computation of premium was that in case of M/s.Jhaveri Polymers also the sales were not reflected in the accounts of the said firm. The Tribunal, however, noted that such sales were later on reconciled. If that be so, in our opinion, there was no other basis for the Tribunal to confirm the premium on such sales. We may recall that M/s.Jhaveri Polymers was not one of the firms, who was mentioned in the documents seized by the revenue on which Shri J.L.Mehta had made his remarks. In the result, the question is answered partly in favour of the assessee and partly in favour of the revenue. Insofar as the sale of ₹ 11.61 Lacs made to M/s.Jhaveri Polymers is concerned, premium paid at the rate of 27.5% would be deleted from the additions made by the Assessing Officer and confirmed by the Tribunal. Remaining additions are confirmed.
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