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TMI Blog2017 (2) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 5,71,03,042/- from the block of Plant and Machinery as on 31-03-2008." 3. Briefly, stated facts are that the assessee is engaged in the manufacturing of high pressure seemless cylinders. A search and seizure operation under section 132 of the Act was conducted in the groups concerns of assessee including the assessee Nitin Cylinders Ltd., on 06.09.2007. The assessee was constructing a factory at Visakhapatnam SEZ for manufacture of high pressure seemless cylinders. During the course of search, the investigation wing found several incrementing material regarding discrepancies in the construction account and were seized. During the course of assessment proceedings, Assessing Officer noted that the search party obtained following details of cheques issued in the name of the parties but payment was not made to them and instead cash obtained by discounting the same, which are as under:- S. No. Name of the party name of the part in whose name the cheques are drawn Amount (Rs.)/ Cheque No. & Date Name of the Bank & Branch & Account NO. of the NCL 1. Dhanotra Construction Co. 12,66,340 cheque No. 853776 dated 13.06.07 State Bank of India, Andheri (E) Telli Galli Branc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 3,13,07,493/- were encashed. Also explain a to who had signed these cheques. Ans. To the best of my memory, the cheques were signed by me. These cheques were issued in a routine course. To buy peace with the department and to avoid my further embarrassment and in larger interest of our group business. M/s Cylinders Ltd. will not make claim of depreciation on this amount of Rs. 3,13,07,498/-." 4. The Assessing Officer taking his admission added this amount of Rs. 3.15 crore to the returned income of the assessee. By observing as under: "On a perusal of the aforesaid confirmations, it is noticed that they are all stereotyped confirmations prepared by the assessee. Even the persons who have allegedly signed these confirmations have the same handwriting. The entire exercise appears to be bogus, especially when none of the parties have been produced before me for verification. The findings of the Investigation wing that the assessee has been obtaining bogus bills to inflate the expenses have not beencontroverted by the assessee by producing the parties at the time of assessment proceedings inspite of having been given sufficient and reasonable time to prove the genuineness of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shah as his unaccounted income. On the facts of the case, the findings of the A.O are fully confirmed and no interference is called for." 9. I have given thoughtful consideration to the matter. A claim had been made that purchases of steel had been made from the five impugned parties. The material purchased was steel and the said material had to be transported from Mumbai to Vishakhapatnam. It was claimed that the material was transported through Sai Krishna Corporation. However, the transporter did not respond to the summons. Further there is no evidence produced to identify the vehicles used for transport such as vehicle registration number, names of the drivers, the salary/batta paid to them. The evidence produced by the appellant are ledger extract copies, copies of invoices with the stamp of SEZ and details of payments made and realized by the parties. It can be observed that though evidence has been produced to show the delivery of steel at the SEZ premises, there is no independent evidence to show the actual and physical delivery of steel from Mumbai to Vizag through road. Further, none of the parties have either physically appeared or responded to the enquiry letter, summo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of the Act by the department on 28-11-2007. This recording of statement has already been negated by the coordinate Bench of Tribunal in the group concerns case i.e. Shri Nitin M Shah in ITA No.4433/Mum/2013 for the AY 2008-09, whereby Tribunal has considered this issue by observing as under:- "11. We have considered the rival contentions of the Ld. Representatives of the parties. In our view, the Ld. CIT(A) has rightly observed that the assessee had declared a sum of Rs. 5 crores for the year under consideration. The said disclosure was on account of various discrepancies/deficiencies that may be noted in relation to claim of additions to the fixed assets in the case of M/s. Nitin Cylinders Ltd. and also to take care of other issues. So far the contention of the department that the assessee had stated the same as unaccounted income in relation to commodity transactions in grey market is concerned, it may be observed that neither any evidence in this regard was found during the course of search action nor in the investigations during assessment proceedings. The AO had made no enquiries in this respect. He has just relied upon the statement of the assessee made during search actio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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