2013 (3) TMI 270

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....see for the assessment year under consideration could not be computed in the reassessment on the basis of information received in the course of search conducted in certain cases on the sole ground the sales tax authorities have accepted the assessee's purchases, sales and closing stock ?" 2. The assessee is doing business in turmeric trade under the name and style of Jagadambal Traders. The assessee filed the returns individually in respect of all those assessment years. However, the Assessing Officer believed that the income chargeable to tax had escaped assessment on the reason that the assessee had discounted drafts/cheques received from various parties including M/s.M.Periasamy Gounder & Co. This information was received by the Asses....

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....ted the Assessing Officer to adopt the figures of turnover finally assessed by the sales-tax Authorities and apply the G.P. rate accordingly. Aggrieved against the same, the present appeals are preferred by the Revenue with the common question of law as stated supra. 3. Learned counsel appearing for the Revenue submitted that the Assessing Officer was right in making the addition based on the information obtained from the said E.P.Thyagarajan, who is the proprietor of M/s.M.Periasamy Gounder & Co which shows that the assessee had discounted drafts/ cheques received from various parties including the said company. It is also contended that though the assessee was given sufficient opportunity to explain the discrepancies, she had not dispr....

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....rein that the Assessing Officer has no jurisdiction to go beyond the value of the closing stock declared by the assessee and accepted by the Commercial Tax Department. In this case, admittedly, the assessee had placed the sales tax return before the Assessing Officer in respect of the assessment years 1998-99 to 2001-02. Therefore, sufficient materials are placed before the Assessing Officer in respect of those assessment years viz., the sales tax returns filed by the assessee and accepted by the authorities. 8. The Tribunal, therefore, rightly found that the Department could not have made the addition merely on the basis of the statement of third parties. Consequently, the Tribunal set aside the order of the first appellate authority an....