TMI Blog2018 (12) TMI 214X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also pertinent that the Manager of the assessee, who made the statement u/s 132(4) had in fact opened a second set of bills in the computer using a password and it was from these materials that a definite pattern of suppression was detected. This pattern having been applied to the earlier assessment years, was perfectly correct and a permissible exercise u/s 144 of the Act being power conferred on the Assessing Officer for proceeding on best judgment. We do not think that there is any scope for interference of the order of the Tribunal insofar as the addition made and adoption of gross profit.- Decided against the assessee - ITA. No. 110 of 2014 - - - Dated:- 24-9-2018 - MR K. VINOD CHANDRAN AND MR ASHOK MENON, JJ. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver yet another set of bills which could be generated only by using a password in the computer. The inspecting team also recovered such bills for the period from April, 2007 to 06.09.2007, the date of search. There was a huge disparity found in the sales and purchase. While the accounted purchase was ₹ 1.16 crores, the actual purchase made was about 4.62 crores. The accounted sales came only to ₹ 1.18 crores as against the actual sales of about ₹ 4.80 crores. 3. Proceedings were initiated under Section 153A read with Section 144 of the Income Tax Act, 1961 (for brevity the Act ). The Assessing Officer made a number of additions for various years, ie., six years prior to the assessment year of which previous year the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax v. Hotel Meriya, [2011] 332 ITR 537 (Ker) and Commissioner of Income Tax v. O.Abdul Razak, [2012] 207 TAXMAN 193 (Ker.) to support the order of the Tribunal. 5. Hotel Meriya was a case in which an inspection was conducted and assessment was proposed for the block period. There was no material disclosed for the previous years in which the assessment was reopened on the basis of the materials found on search. In fact there was clear deposition of the employee of the assessee therein admitting that only 80% of the sales were reflected in the accounts. Considering the evidentiary value of the statements made even for the years prior to the year in which the search was conducted, a Division Bench of this Court found that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r contention raised of a retraction having been made completely extinguishing the evidentiary value of the statement earlier made on interrogation. Relying on Hotel Meriya it was found that the retraction would not in any manner destroy the evidentiary value of the statement made under oath and permitted to be used in evidence by express statutory provisions. It was held that a self-serving retraction without anything more cannot dispel the statutory presumption. We respectfully agree with the dictum laid down in the aforecited decisions. 7. In the present case also, at the time of search, there was detected materials as available from the computer of the assessee showing vast disparity in the sales and purchase disclosed as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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