TaxTMI 
TaxTMI 
2014 (1) TMI 28
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....carried out by the authorised officers of the Income Tax Department on 20/03/2002 at the residential and business premises of Vaidya Shri Narayan Das Swami at Phulera. During the course of search, incriminating documents in the nature of computerized project report was found and seized, which pertained to the respondent-assessee, as per Annx.A-23 pages 1-12 of the Panchnama dated 20.3.2002. On the basis of the said proceedings, notice under Section 158BD read with Section 143(3) of the Income Tax Act came to be issued requiring the assessee-respondent to file a return as contemplated under Section 158BD read with Section 158BC. The assessee submitted a return for the block assessment in form No.2B declaring nil income. It is the case of the....
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.... was submitted with the Vishwakarma Police Station. Further, in the alternative, it was submitted that it contains only projection of the figures and do not suggest that assessee has made any investment or incurred cost to that extent. In the last alternative, it was also submitted that the project report did not pertain to it and merely because the name of the assessee finds place, there is neither signatures of any of the Directors or relatives on these papers nor the date has not been mentioned and even the authenticity of the report is doubtful. However, the assessing officer was not satisfied and dis-satisfied with the explanation offered by the assessee an addition of Rs.36,21,692 was made as per the figures mentioned in the project r....
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....d the contention on behalf of the assessee that the proceedings initiated under Section 158BD was bad and even quashed the assessment. It is this order of the Tribunal, which has been assailed before us. 7. Shri R.B. Mathur, learned counsel for the revenue submitted that the Tribunal has in a summary manner come to the conclusion that proceedings under Section 158BD is not proper without bringing any material on record. He contended that the incriminating document namely project report having been found in the search, an assessing officer could validly form his opinion on such project report and proceedings under Section 158BD could have been initiated. He would further contend that the Tribunal has erred in law in quashing the assessmen....
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....s produced, which is insufficient to come to the said conclusion. The Tribunal ought not to have decided the issue on merits and to give its own conclusion and in deleting Rs.36,21,692/- on merits. 9. He would further contend that none of the figures in the project report matched with the figures even as per the return of income and/or profit and loss account/balance-sheet, which were on record over the years. He contended that substantial questions of law arise out of the order of the Tribunal for consideration of this Court. 10. We have heard the learned counsel for the appellant/revenue and have perused the impugned order. 11. In our view, the assessing officer having found the project report/incriminating document relating to t....
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....onducted in the month of November, 1995. No other information had been furnished. The provisions contained in Chapter XIVB are drastic in nature. It has draconian consequences. Such a proceeding can be initiated, it would bear repetition to state, only if a raid is conducted. When the provisions are attracted, legal presumptions are raised against the assessee. The burden shifts on the assessee. Audited accounts for a period of ten years may have to be reopened. As the Assessing Officer has not recorded its satisfaction, which is mandatory; nor has it transferred the case to the Assessing Officer having jurisdiction over the matter, we are of the opinion that the impugned judgments of the High Court cannot be sustained, which are set asi....
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.... vide its letter dated 23.10.1996 sanctioned term loan of Rs.25 Lacs and cash credit limit of Rs.10 Lacs and these facts indicate that the project reports which were found in search were not acted upon by the assessee even for submitting the said reports before the RFC/SBBJ. It is also a finding of fact that the assessing officer in making the addition has compared the figures of the project report with the actual figures as per the balance sheet as at 31.3.1997 and not as per the balance sheet as on 31.3.1998, when the project was fully implemented. It is the claim that figures match with the figures of balance sheet as at 31.3.1998, whereas the assessing officer considered with the figures as on 31.3.1997 when even it was under constructi....