2003 (10) TMI 288

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....r, the CIT on verification of the records found that the AO has not properly applied his mind to the materials available before him while completing the impugned assessment. The CIT observed that the materials collected by the Department in the course of search made under s. 132 on 16th Feb., 1994 were not properly assessed and utilised by the AO in completing the assessment for the impugned asst. yr. 1993-94. 4. Various documents were seized in the course of search. The materials included loose papers which indicated sale proceeds received by the assessee during the period from 3rd Oct., 1992 to 31st Oct., 1993. The figures found as per these loose sheets indicated the outstanding balances relating to unaccounted sales made on various d....

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....ts made by the assessee at the time of search. According to him the revisional order passed by the CIT was only on a different opinion entertained. The learned chartered accountant submitted that all the suppressed income found as a result of the search was offered by the assessee himself for the succeeding assessment year, i.e., for the asst. yr. 1994-95 and the entire aspects of such sales suppression were considered for the assessment for the asst. yr. 1994-95 and, therefore, there is no basis at all in repeating the same materials for the purpose of the impugned asst. yr. 1993-94. 7. Shri C.R. Janardhan, learned Departmental Representative, on the other hand, argued that the details of suppression intervening between the two asst. yr....

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....ithmetic code to manipulate these suppressions. When these matters were borne out of the seized records, it is quite natural, that the relevance of these materials leading to the sales suppression should have been considered by the assessing authorities for the asst. yr. 1993-94 along with the asst. yr. 1994-95. In the present assessment order relating to the impugned asst. yr. 1993-94, the AO has not mentioned anything about the search materials relating to the impugned assessment year. As rightly pointed out by the learned Departmental Representative this is a fatal omission committed by the AO. Sometimes it might be possible for the assessee to convince the authorities that in fact there was no suppression for the asst. yr. 1993-94 or fo....