2009 (11) TMI 269

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....usiness of running a bar hotel as a partnership firm. During the survey conducted various records were recovered including the price list maintained by the bar hotel for retail sale of liquor. Statements were recorded from the managing partner, the hotel manager and also a supplier. The Assessing Officer found from the recovered materials and the statements that the gross profit conceded was incorrect and the gross profit received by the assessee was 60 per cent. for the year 1997-98, 70 per cent. for the year 1998-99 and 75 per cent. for the year 1999-2000. Assessments were accordingly completed on an estimation basis under section 144 of the Income-tax Act, 1961. On appeal, the Commissioner of Income-tax (Appeals) relying on the judgment ....

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....oboratory value in assessment and statement recorded under the said provision can be even relied on by the assessee. In other words, the decision of this court that the statement recorded under the above provision does not have evidentiary value, in our view, does not lay down the correct law. However, since counsel for the respondent-assessee does not rely on the above decision, we proceed to consider these cases on the merits without referring the matter for consideration to a Full Bench because by the operation of the latter part of the section, such statement has relevance for assessment and other proceeding under the Act. 3. This is a case where during survey the Department recovered certain account books, price list, etc. Statement....