TMI Blog1994 (10) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale of arrack. Instead of the selling price of Rs. 26.50 per litre of arrack, the Assessing Officer had estimated the selling price at Rs. 28 per litre and thus the addition was made in the assessment. In the appeal, the addition was reduced to Rs. 1,50,000 and on further appeal to the Tribunal, the addition was restricted to Rs. 75,000. In the meanwhile, there was a search under s. 132 of the IT Act, 1961, on 27th May, 1983 in the premises of one of the partners, Sri K. Bhaskaran. In the course of the search a copy of the P L a/c of the firm for the year ended 31st March, 1978 surfaced. On the basis of the seized document, notice under s. 148 was issued and the assessment was reopened under s. 147(a) of the IT Act. The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he time of the search Sri Bhaskaran was not a partner of the firm. He would describe the seized profit and loss account only as a piece of paper unsigned, uncaptioned and unidentified. He did not know whether any statement was taken from Sri Bhaskaran in respect of the seized document and if any statement had been taken it was not put to the assessee. Further, there was no justification to disallow the excise Vattachelavu and estimate the income on fixed deposits disregarding the fact that the seized document did not disclose any such estimate of income on fixed deposits. 4. Sri P. Balakrishnan, the learned Departmental representative referred to the order of the Tribunal dt. 12th May, 1989 in the assessee's own case in the first round o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de that the seized document belonged to the firm in view of the identity of the expenditure in identical sums as mentioned above. Further, the Tribunal in its order dt. 12th May, 1989 at para 8.4 has concluded as follows : "8.4 We have considered the matter carefully. There is ample evidence to establish that the seized P L a/c and the balance- sheet found at the residence of Sri Bhaskaran was in respect of the business done by the assessee-firm. Sri Bhaskaran has been stated to be the managing partner of the assessee-firm. It has been vaguely suggested that Sri Bhaskaran might have prepared the said papers for certain other purposes. It has not been explained as to with what other purpose Sri Bhaskaran could have prepared the P L a/c an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that perhaps the learned CIT(A) got such an impression but there is no material on record to show that the assessee had given up its claim. However, Sri Wariyar admitted that pucca vouchers were not maintained in respect of excise Vattachelavu. 8. Having regard to the submissions made before us, we modify the order of the learned CIT(A). There is no material to show that the impugned expenditure was in the nature of bribery. In law it has to be assumed, unless the contrary is proved, that the authorities would only act in accordance with law. Illicit distillation, besides doing great damage to the lives of the people more so to the lives of the poor people is a public evil and support given to the State action in curbing it or in cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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