TaxTMI 
TaxTMI 
2014 (11) TMI 511
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....icer initiated steps under Chapter XIV-B of the Act and issued notice under Section 158BC of the Act. It was mentioned that a comparison of the figures mentioned in RG-1 register on the one hand and Daily Rough Production Register (DRPR) on the other hand revealed discrepancy of about 250 metric tonnes of steel and in that view of the matter, the income tax on the corresponding amount is payable at the penal rate. Reference was also made to the statement said to have been made by the managing partner of the respondent. A reply was submitted by the respondent to the effect that the purport of the DRPR is totally different from that of the RG-1 register. According to them, it is only after the steel that is produced on a particular day and....
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....corded from the managing partner of the respondent under Section 132(4) of the Act, there was no basis for the Tribunal to interfere with the order of assessment. Sri Y. Ratnakar, learned counsel for the respondent, on the other hand, submits that except that the assessing officer made comparison of the facts and figures mentioned in RG-1 register and DRPR, no independent material was discovered and the assessment was made on the basis of assumptions. He contends that the entries in the DRPR are in relation to the activities that take place on a particular day and the quantity of steel produced on that day would be entered in the RG-1 register three days thereafter on completion of cooling, quality verification and weighing, and that the....
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....ing and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Indian Income Tax Act, 1922 (11 of 1922), or under this Act. On a perusal of this it becomes clear that firstly the statement must be recorded during the course of search and seizure. Secondly it can be recorded only as a sequel to the discovery of books of account, cash, bullion or similar items. In the instant case, the search has taken place on 25-03-1999, but the statement was recorded on 11-05-1999. It was not even alleged that the search was carried out for the entire period, in between. A statement recorded one and half months after the search, can by no means be brought under the purview of Section 132(....
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....rs. When the maintenance of registers was under the Central Excise Act and the rules framed thereunder, the assessing officer could have formed opinion only after ascertaining the relevant facts or the method of arriving at conclusions, from the concerned officials of the Central Excise Department. The respondent made a specific plea that the entries in the DRPR are only tentative in nature and it is only after the steel produced on a particular day is cooled for three days, tested for quality and weighed, that the corresponding entry can be made in the RG-1 register. This however did not weigh with the assessing officer. Straightaway conclusions were drawn as to the discrepancy. Even if necessary latitude is shown regarding the power of....