TaxTMI 
TaxTMI 
2011 (7) TMI 655
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....leading up to this appeal are as follows: The respondent is an individual-assessee and is a Supari merchant. He is a wholesale supari merchant and has started his business in May 1993 and has been filing the returns for the assessment year 1993-94. On the basis of the information in the possession of the Department and since there was reason to believe that assessee is in possession of money, assets, properties which represent either wholly or partly income which has not been disclosed for the purpose of Income Tax Act, 1961 (hereinafter called 'the Act'), a search was conducted under Section 132 of the Act on 28-1-1998. Thereafter assessment proceedings were initiated under Chapter XIVB and notice was issued under Section 158BC of the A....
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....sp; 38,545 26-12-97 3,50,136 4. UCO Bank 'Pramod Traders' 22-12-97 to 27-01-98 23,98,439 71,953 27-01-98 5,59,514 Total 7,54,263 18,29.400 During enquiry, assessing officer found that account No. Nil 'Sangam Traders' in Indian Bank and Pramod Traders in UCO Bank at Sl. Nos. 1 and 4 were benami accounts and though notices were issued to the person in whose name accounts were opened, there was no such address and a person who has introduced did not specifically state that he has ....
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....owever be treated as propositions of law. They are only inferences based on normal probabilities and can be misplaced by any material on record which may indicate to the contrary. In the assessee's case, the above benefit of arranging all the 4 benami bank accounts in a chronological order and working peak thereon has not been considered for the reasons discussed in the order. In view of the above, the benefit of merging all the four bank accounts and working out peak on the consolidated basis has not been done to protect the interest of Revenue. In case, such consolidation of all the 4 benami bank account is done, then the over all peak credit is Rs. 5,59,514 as it falls on 27-01-98 in the account of M/s. Pramod Traders in UCO Bank, ....
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....and in respect of Sl. Nos. 2 and 3 in the chart prepared by the Assessing Officer, deletion for Rs. 2 lakhs was justified. Being aggrieved by the said order passed by the Tribunal, this appeal is filed by the Revenue which is admitted on 3-1-2007 for considering the substantial questions of law framed in the memorandum of appeal as follows: "(1) Whether, the Appellate Authorities were correct, in holding that a sum of Rs. 14,02,011/- cannot be treated as the income of the assessee by ignoring the search material, the admission made by the assessee and the accounts seized and consequently recorded a perverse finding. (2) Whether the Tribunal was correct in directing deletion of peak credit despite the fact that no cogent or relevant re....
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....000/-. Therefore, separate peak credit was given for the two accounts and Rs. 2 lakhs which has been disclosed by the assessee ought to have been added to the income arrived at by the Assessing Officer and the order passed by the appellate authority is liable to be set aside. 6. The learned counsel appearing for the respondent argued in support of the order passed by the Tribunal. He submitted that since the peak period ought to have been taken into by taking business profit as arrived at by the Assessing Officer, the order passed by the Tribunal is justified. 7. We have given careful consideration to the contentions of learned counsel appearing for the parties and scrutinized the material on record. 8. The material on record would....