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TMI Blog2017 (3) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1962, thereafter, the visit was done by the preventive team of the department on 13.12.2005 and the statement of Sh. Dev Raj Sharma, General Manager was recorded wherein the question was asked about the surrender of Rs. 32 lacs to the income tax department on 17.09.2004 and as reflected in notes on significance accounting policies to the balance sheet, profit and Loss account for the year 2004-2005, it was stated the income was surrendered during the course of survey conducted by income tax department on the following grounds. (a) Difference in Receivables (b) Difference in cash (c) Difference in stock (d) Difference in Assets 3. As the statement of Sh. S.K.Maohotra, Managing partner was also recorded and it was alleged that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable. Therefore, the impugned order is to be set aside. 5. On the other hand, the Ld. AR argued that there were difference in stock and the appellant was called to explain the reasons for income surrendered with the income tax authorities but the appellant failed to give satisfactorily answer and the appellant has no other business. In that circumstances, income surrender is earned by the appellant from the said business. 6. Heard the parties and considered the submissions. 7. Admittedly, as per the Central Excise Act, duty is payable on the goods manufactured but in the case in hand the income has been surrendered by the appellant before the income tax authority during the course of survey under section 133-A of Income Tax Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the Revenue states that he has no knowledge about the status of the order. When an appeal is filed by the department, the least expected from the counsel for the department is to know the status of the order followed in the impugned order. In absence, thereof, the representation by the department can hardly be responsible representation. We hope the department and its counsel will take appropriate measures in this regard. Further in the case of Ramesh Studio & Color Lab reported in 2010 (20) STR 817 (Tri. Del.) observed as under: 5. Heard on perusal of the record, a query was made to the learned DR whether this allegation that the amount disclosed before the income tax authorities is corroborated by any evidence or not. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place than the manufacturing unit. In respect of the sale and purchase of traded goods the appellant produced invoices/bills and also copies of produced return filed with the Sales Tax authorities which is not in dispute. The appellants are also providing service of clearing and forwarding agent regarding which appellants were paying service tax and produced the copy of returns and are also proof regarding deposit of service tax. In respect of trading activity, we find that the copy of invoices under which goods were sold the name of customers is mentioned but no verification was conducted from their customers regarding the receipt of the goods whether the same were manufactured by the appellant of these are in respect of traded goods. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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