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TMI Blog2018 (12) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law sought to be answered as found in the memorandum are as follows:- "1. Whether in the facts and circumstances of the case the Income Tax Appellate Tribunal is correct in law in sustaining the additions in gross profit made solely on the basis of statement of Mr.Abdul Razak who is only the employee of the assessee especially when there is no corroborative or material evidence on record ? 2. Whether in facts and circumstances of the case the Tribunal misdirected itself in upholding on the estimation based on Gross Profit rate, as only net profit rate can be adopted on the alleged suppressed turnover, especially when the turnover has been estimated at four times of the reported turnover ?" 2. On facts suffice it to noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f accounts, in the previous year to the assessment year in which the search was conducted. There were other issues, some of which were allowed by the Tribunal and others remanded by the Tribunal. We confine ourselves to the above referred issues, which are with respect to the additions made to the total income and the gross profit adopted for determining the total income. 4. The learned Counsel for the appellant would argue that there was absolutely no recovery of materials with respect to the earlier assessment years and in such circumstances there could be no assessment made on best judgment for other years in which the assessment stood concluded or are still pending. The Counsel also argues that the very same percentage of addition cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath, and (c) compelling the production of books of account and other documents. The statement of the partner and employee recorded by the Assessing Officer as well as the documents seized, according to the Division Bench would come within the purview of Section 131 of the Act. Considering the legislative intent under Chapter XIVB it was held that when making block assessment, the evidence recovered of concealment of income for every year in the block year is not essential. When there is discovery of materials at the time of search indicating non-disclosure of income, then best judgment assessment was permissible on the basis of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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