TaxTMI 
TaxTMI 
2011 (3) TMI 1611
X X X X Extracts X X X X
X X X X Extracts X X X X
....13 of the order of the Tribunal?" 3. A search and seizure operation came to be carried out by the income tax authorities under section 132 of the Act in the case of M/s Gokul Corporation and its partners, namely, Shri Sureshbhai A. Patel and Shri Deepakbhai Mehta on 21.9.1995. During the course of search operations, loose documents as per Annexure A-1 were seized. These documents at pages 21 and 22 indicated transactions involving the name of the assessee company. On the front side of page 22, on the left side details of payments made by Arunbhai on account of settlement of dispute of members of Silver Arc had been indicated. On the right side, the sources of payments had been indicated. The paper related to land of Silver Arc Scheme. A sum of Rs. 1,35,00,000/- had been paid to one Shri Arun Thakkar which included actual payment of Rs. 1,10,00,000/- under head "Silver Arc Members Samadhan Khate Arunbhai ne". On the right hand side of the page 22, details of collection of moneys amounting to Rs. 1,85,00,000/- were shown. On the top portion on the right hand side of the page, the following narration appeared: "(Silver Arc Khate Gautam Adani) Gautam Adani on account of Sil....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ified as follows: "Whether on the facts disclosed pursuant to the raid conducted on the premises of M/s Gokul Corporation and its partner Shri Sureshbhai A. Patel and Shri Deepakbhai Mehta, the Appellate Tribunal was right in law in deleting the additions of Rs. 20 lakhs as well as Rs. 25 lakhs made on the basis of statements of Shri Sureshbhai A. Patel and Shri Deepakbhai Mehta for the reasons recorded in Para 12 and 13 of the order of the Tribunal?" 10.Mr. K. M. Parikh, learned Standing Counsel appearing on behalf of the appellant, drew the attention of the court to the impugned order of the Tribunal, to submit that there was sufficient evidence to indicate that the payment of Rs. 20 lakhs and Rs. 25 lakhs in respect of the aforesaid two deals had been made by the assessee. It was submitted that documentary evidence had been recovered during the course of search proceedings which were supported by the statements of Shri Sureshbhai A. Patel and Shri Deepakbhai Mehta and it was based upon such documentary evidence as corroborated by the statements of the aforesaid persons that the Assessing Officer had made the additions in question, and as such, the Tribunal was not ju....
X X X X Extracts X X X X
X X X X Extracts X X X X
....esented the undisclosed income of the assessee. The only evidence on which the Tribunal could rely for the purpose of arriving at this finding was the letter dated February 18, 1955 said to have been addressed by the Manager of the Punjab National Bank Limited to the Income-tax Officer. The Supreme Court, interalia, held that it is true that proceedings under the income-tax law are not governed by the strict rules of evidence and therefore it might be said that even without calling the manager of the bank in evidence to prove the said letter, it could be taken into account in evidence. But before the income-tax authorities could rely upon it, they were bound to produce it before the assessee so that the assessee could controvert the statements contained in it by asking for an opportunity to cross-examine the manager of the bank with reference to the statements made by him. It was submitted that the facts of the present case are similar to the facts of the said case inasmuch as, in the present case also, the documents recovered from the premises of third party as well as the statements of the said parties have been relied upon for the purpose of making the impugned additions in the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see would not be sufficient to establish that on money has been received by the assessee. - The document appearing at page 22 of Annexure A-1 shows the payment of Rs. 20 lakhs on 20.9.1994 on the cancellation of the Silver Arc Scheme with Gautam Adani. Apparently it is a cancellation of the deal and the amount has been returned to the assessee by Shri Adani. There is nothing on record as to when the money was originally paid. - As per the books of account of the assessee a sum of Rs. 25 lakhs has been paid by cheque on 8.5.1995 to Govind C. Patel in respect of Silver Arc Deal. If that be so, the return of Rs. 20 lakhs in cash on 20.9.94 does not fit in with the sequence of events. - There appears to be confusion regarding the identity of the parties with whom the Silver Arc deal had been entered into by the assessee. According to Shri Deepakbhai Mehta, the Silver Arc deal was entered into by the assessee company with Shri Adani whereas return of Rs. 20 lakhs in cash on 20.9.94 appears to have been made by Shri Govind Patel to the assessee. - The statements of Shri Sureshbhai and Deepakbhai do not bring out full facts with regard to the t....