2013 (10) TMI 150

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....octroi was not paid, retained only a sum of Rs. 1,93,202/- by way of addition on the premise that considering the GP ratio and turnover of the assessee, the assessee's value of investment in such purchases would only be Rs. 1,93,202/-. Against the said order of the Tribunal dated 16.4.2010, we are informed that the Revenue has already preferred Tax Appeal No.2227 of 2010 which is admitted and pending for final hearing, in which following question has been framed:      "Inspite of specific findings recorded by the Tribunal that the assessee failed to discharge the onus lying on him that the impugned purchases were not unexplained, whether the Tribunal below committed substantial error of law in restricting the addit....

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....lated to purchases which are recorded in the books but on which excise duty is not paid and the second is that purchases are not at all recorded in the books. Since it is the claim of assessee that purchases on which octroi was charged were recorded in the regular books the onus is on the assessee to show that concerned purchases are recorded in the books. No such specific purchase by comparison with the books was shown. Therefore, it is difficult to infer that octroi duty was charged in respect of purchases recorded in the books in respect of which purchase bills were not available. We uphold the argument of ld. DR that onus is on the assessee to explain as to on which purchases, recorded in the books, octroi was charged by octroi departme....

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....ases on which octroi department had charged duty. Further the reliance on the decision of ITAT, Jabalpur Bench in the case of Satyapal Wassan (supra) is also misplaced because in that case entires found recorded in the seized documents could not be constructed as either sale or purchase or loan or debt. It was held in that case for affixing additional liability on the basis of seized documents four ingredients are required to be established. They are - (i) name of the assessee, (ii) nature of transaction (iii) quantum involved and (iv) period of transaction. If any of these ingredients are not inferable from the seized documents then onus is on the AO to fulfill the deficiencies by carrying out post search investigation. If any of the ingre....