TMI Blog2017 (11) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... carrying out all these business is a part of the work carried out by the assessee company and these deposits are considered as cash deposits in the bank account then there cannot be any assessment more than the amount of peak credit for both the years being a block period which does not exceed more than 10 lakhs. In no case there can be 100% assessment on the total deposits as an income and cannot be considered as undisclosed income of the block period - Decided in favour of assessee. - D. B. Income Tax Appeal No. 77-78 / 2008 - - - Dated:- 1-8-2017 - K. S. Jhaveri And Inderjeet Singh, JJ. For the Appellant : Mr. Anuroop Singhi with Mr. Aditya Vijay For the Respondent : Mr. Sanjay Jhanwar with Ms. Archana JUDGMENT 1. In both the appeals, common questions of law and facts are involved, hence they are decided by this common judgment. 2. By way of these appeals, the appellant has challenged the judgment and order of the Tribunal whereby the tribunal has dismissed the appeal of the department and partly allowed the appeal of the assessee. 3. While admitting the appeals, this court framed the following substantial questions of law:- Income Tax Appeal No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awals from the bank account were through cheques signed by the Director, Shri Sanjay Bhatia, who had the authority to operate the bank account; (f) Transactions in this bank account were not disclosed in the regular books of accounts of the assessee s company (as per the statement dated 12.07.2004 and 09.02.1999 of Shri Sanjay Bhatia. 7. He contended in view of the paragraph 9, 10 11 of the order of assessing officer which reads as under:- (9) Taking support from the above mentioned observation, the assessee explains that it role was that of a felicitator only for providing bank entries and it did no actual trading. The actual sale purchase was done by Mayur Thakkar and not by anyone who had provided them the entries. It has been further argued that the assessee never came in the actual possession of material produced by Shri Thakkar/RRPL and had never done any trading of the material. (10) On the previous day of hearing i.e. 21.07.2004 the assessee, vide letter dated 21.07.2004, the assessee had asked for copies of assessment/appeal order of Thakkar groupd of case and also sought to confront Shri Mayur M. Thakkar and Shri Atul M. Thakkar. On the very same d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reliance Industries Ltd. Command a premium and Mr. Mayur M. Thakkar has been using these documents to complete his paper work and shown as the sale of the finished goods to various concerns including one the assessee and as per provisions of Section 132(4A), any documents found during the course of search in the possession of the persons or form his premises who has been searched, the same are presumed to be his ownership and relate to the said person unless otherwise there is some evidence to prove that it belongs to somebody else. Since the treatment has been given to various other buyers of the industial solvent and accommodation entries providers by assessing only a commission in their hands and cash premium in the hands of Mr. Mayur M Thakkar a different treatment cannot be given to the assessee. As mentioned, Vora Group has been assessed on commission income only and in case there could not have been any relation to carry out such transactions there was no purpose of finding the blank letter heads, authority letters, cheque books etc. along with blank Grs in the name of Mehta Bulk Carriers, address of which is given and printed on the Grs and on the bills is that of a Tailor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to made a sale in the open market in Bombay and it could not have been possible for him to permanently sit down in Bombay and carry out this business only whereas he was regularly carrying on the manufacturing of chemicals, paints and also steel casting etc. being his regular business in Jaipur. Had he been in Bombay then there was no purpose of using his authority letters by Mr. Mayur M. Thakkar and whole of the matter is to be seen not only on the basis of the direct evidence created and fabricated by Mr. Mayur M. Thakkar but by circumstantial evidence which will go to prove that in these transactions the involvement of the assessee is nothing more than a name lender. Under these circumstances various other arguments were given by the counsel and various statements and extracts from the assessment order and CIT (A) orders of Mr. Mayur M. Thakkar were read and observations of the assessing authority and CIT(A) were read thoroughly and attention was drawn to the findings given by the said authorities which have a direct nexus to the issue in dispute and hence it cannot be said that they do not have any evidentiary value whereas he has strongly relied upon the said assessment order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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