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2021 (3) TMI 521 - KARNATAKA HIGH COURTRecomputation of appellant’s total and taxable turnovers - suppressed turnover as allocated on a pro-rata basis in the ratio of declared taxable turnovers for the respective tax periods - tax periods from April 2005 to October 2006 - correctness to pass a single seizure order in respect of the documents seized from two different premises belonging to two different persons who are not directly connected with each other without mentioning which document is seized from which place - correctness to treat the transactions recorded in the documents seized from a third party as the transactions of the appellant without there being any indication to such effect in such seized documents against such of the entries relating to such transactions. HELD THAT:- The Tribunal recorded a finding that the Assessment Authority is not justified in passing the assessment order in respect of the documents seized from two different premises belonging to two different persons who are not directly connected with each other without mentioning which document is seized from which place and further recorded a finding that it is not reasonable and justified on the facts and circumstances of these cases to treat the transactions recorded in the documents seized from a third party (Sri Santosh Jha) as the transactions of the assessee without there being any indication to such effect in such seized documents against such of the entries relating to such transactions and further recorded a finding that though the large number of purchase transactions reflected in the seized documents have been treated as the assessee’s suppressed turnover and simultaneously when a large number of sales turnovers reflected in such documents have also been considered as suppressed turnover without treating any part of such suppressed sales turnover to be from out of the suppressed purchase turnovers and held that even a small percentage of the suppressed sales are from out of the suppressed purchases. There is no justifiable reason for the FAA to have considered 40 percent of the transactions relating to Sri Santosh Jha with his other clients as the appellant’s transactions based on the documents seized from the premises of Sri Santosh Jha. In the documents seized from Santosh Jha’s premises, there were some entries relating to the appellant’s transactions also and against such transactions appellant’s code name is Mentioned as ‘S/M’. Such transactions have been considered separately in the impugned appeal order as the appellant’s transactions and dealt with. The Tribunal modified the order passed by the 1st Appellate Authority holding that the appellant/assessee’s suppressed turnover for the aforesaid period cumulatively came to be refixed at ₹ 1,20,98,891/- - revision petition dismissed.
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