9911796707
TMI Blog2003 (8) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the assessee had failed to discharge its onus under the provision of the Income-tax Act?" The facts, from which the question framed above emanates, need a necessary mention. The respondent-assessee filed its return of income on June 28, 1985, and a revised return on February 17, 1988, pertaining to the assessment year 1985-86. The income-tax assessment of the assessee for the assessment year 1985-86 was completed under section 143(3) on February 15, 1989, by the Deputy Commissioner of Income-tax, Special Range, Rohtak. A search and seizure operation was conducted by the Directorate of Revenue Intelligence (Anti Evasion) at the business premises of the assessee and also at the residential premises of one Mr. M.L. Vyas, an executive of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice were only an information relied on in the show cause notice by the Central Excise Department. This information was available even before the show cause notice came into existence. The case of the Department was that the annexures served two purposes, namely, that the documents were in existence even before the show cause notice and that the same had been made annexures to the show cause notice. In the hands of the Department this is the only information from outside sources which can be utilised for the purpose of assessment. The Assessing Officer, while disagreeing with the reply to the show-cause notice added an amount of Rs. 65 lakhs to the total income of the assessee subject to the filing of complete details of the onix and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contention is that on the facts and circumstances of this case and in particular when the annexures with the show cause notice dated March 27, 1986, revealed that the company had charged extra money than the one mentioned in invoice, the Income-tax Department was well within its right to add to the income of the company and issue show cause notice and the question, which has been posed for decision was required to be sent by the Tribunal as it was not such which could be said not to be even arguable. Once, therefore, an arguable point is made out, the Tribunal has to refer the question for adjudication, contends learned counsel. For his aforesaid contention, reliance has been placed on a judgment of the Supreme Court in CIT v. Managing Trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery notice on the basis of which it was a case of the Department, that it required to add to the income of the assessee, has been quashed, no meaningful purpose shall at all be served in still persisting and proceeding with the show cause notice. We may mention here at this stage, that while dealing with the core issue pertaining to extra charges disclosed by annexures by virtue of statement of dealers, the Delhi High Court held as follows: "From the statements of these dealers, it is clear that none alleged that any extra payment over and above the invoice price was made to the plaintiff or its directors. Statement of Mr. Vyas was also recorded under section 14 of the Act. In his statement, Mr. M.L. Vyas admitted that he was the sales ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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