9911796707
TMI Blog2010 (1) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... ' under section 158B(b) of the Act even though the deposits and interest under scrutiny formed part of the regular returns of income filed prior to the date of search ? 2. Whether the Tribunal is correct in concluding the assessment of certain deposits and interest thereon as undisclosed income on the strength of the certain sworn statements even though the said sworn statements could be considered as valid evidence in framing of the block/special assessment under consideration in the light of the materials establishing and proving such deposits ? 3. Whether the Tribunal is correct in law in affirming the block Assessment referring to the retrospective amendment brought in Chapter XIV-B of the Act eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounted in the books of account in respect of hire purchase loans. He also admitted that in respect of short-term loans, interest was being charged at 4 per cent higher than the interest recorded in the books. 5. One Shri V. Kandasamy, another customer, who was also present at the time of search, was examined and he stated that his partner Shri P. Ramasamy had obtained hire purchase loan of Rs. 2,30,000 for the purpose of purchase of a lorry and he paid penalty to the finance concerns of the group at the rate Rs. 9 per day for delayed payment of the loan instalments. The said statement was also admitted by Shri R. Shanmugasundaram, the manager. 6. These confessional statements of the manager were admitted by Sri P. Nallappan, the manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence to show that the deposits claimed to be bogus. 8. Mr. Narayanaswamy, learned counsel appearing for the Revenue would on the other hand submit that insofar as the first submission is concerned, in view of subsequent amendment to the Finance Act, 2002, which came into force from 1st July, 2002, the evidence or other material information relatable, which is available to the officer on the date of search could also be relied upon in terms of section 158BB(1) of the Act. As far as the second submission is concerned, the learned counsel would submit that on the date of search, as many as eight creditors were examined and from their statements, the assessing authority came to the conclusion that there were undisclosed income in view of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention is concerned, it relates to questions of fact. Admittedly there were 31 creditors. Out of 31 creditors, eight creditors gave their statements to the effect that they did not have any deposits in the respective concerns. Therefore, the Assessing Officer had rightly come to the conclusion that those deposits were not genuine. To this extent, the assessees/appellants cannot have any grievance before this Court. 11. Insofar as the remaining creditors are concerned, they were not examined at the time of search and their statements were recorded subsequently. In their statements, they had stated that they had deposited the amount and some of the depositors had also stated that they had withdrawn certain portion of the amount. However, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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