2013 (2) TMI 295

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.... and are of a same group. Therefore, for facility of reference, the facts are taken from ITA No.30 of 2012. The grievance of the appellant in the said appeal, in respect of the assessment year 2003-04, is in respect of disallowance of Rs.10,25,000/- on the basis of consumption of coal estimated at 2.25% then 2.80% declared by the appellant. In the assessment year 2004-05, the disallowance has been made in respect of consumables stores and oil/lubricants. The assessee has claimed following substantial questions of law as are arising for consideration by this Court: 1. Whether the ITAT is justified in confirming the disallowance and that too having made on estimate and presumption basis against the well settled law as in the case of CIT Vs....

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....s of Block Period Assessment, no addition as "undisclosed Income" can be made by the Revenue on estimation basis unless these are evidenced by some incriminating document as found during the search as so held in the case of CIT Vs. R.M.PATEL, 9 DTR 260 (MADRAS). 5. Whether the order of the Tribunal is legally unsustainable & bad in law and perverse to the extent that the authorities below have clearly deviated from well established 'Principles of Consistency' wherein under similar facts and circumstances the Authorities below had admitted the declared results and in specific the user of coal, fuel, consumables, as declared by the appellant? 6. That the order of the Tribunal is legally unsustainable and bad in law and perverse. The ....

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....course of search and seizure. Since the spiral pads, the basis of assessment in the year 2003-04 and 2004-05, were recovered during the search carried out on the residential and business premises of the appellants, we find that the disallowance on account of excessive coal is based upon the material recovered during the search operations. In fact, the Commissioner of Income Tax (Appeals) has given benefit to the assessee in respect of adding made in other years only for the reason that material taken in possession pertains to the year 2003-04 and 2004-05. We do not find that any question of law arises on the basis of such finding of disallowance recorded by the Commissioner of Income Tax (Appeals) and affirmed by the Tribunal. In respect....