2007 (11) TMI 639

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.... sold to one abubakar for a sum of Rs. 60 lakhs. A search was conducted by the department on the business premises of the firm and also the residential premises of the partners. Certain documents were seized during the search. Based on the same, the assessing officer held that though the sale consideration for selling the factory is shown as Rs. 60 lakhs as per the sale deed, the firm has actually received a sum Rs. 82 lakhs. Accordingly the amount of Rs. 22 lakhs was seized in the office of the appellant firm has undisclosed income. Similarly, the assessing officer also made an addition of Rs. 4,40,653/- which amount was written off by the Karnataka Bank out of the loan amount of Rs. 64,40,453/- payable by the firm on the ground that the a....

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....s. In view of the findings of the authorities in respect of the assessment of the purchaser of the factory, the authorities in the case of the assessee cannot take different view than that of the order confirmed view than that of the order confirmed in the case of assessment of the purchaser. 6. In regard to the second question of law, Mr. Bhat contends that though a sum of Rs. 4,40,653/- has been written of the Karnataka Bank, the same could not have been included by the assessee for the relevant assessment year since the same was required to be shown only in the subsequent assessment year. Therefore, he contends all the authorities without considering the factual position have wrongly added a sum of Rs. 4,40,653 has income of the asses....

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....er was justified in treating the same as unproved credits. In the circumstances he requests this court to dismiss the appeal. 9. Having heard the learned counsel for the parties, we are of the opinion the questions No.1 and 2 are to be answered in favour of the assessee an question No. 3 has to be answered against the assessee for the following reasons: In regard to the question No. 1, if the department has accepted the version the purchaser of the factory that the factory was purchased at a cost of Rs. 60 lakhs and the order of assessment has become final, it is not open for the department to contend that the factory was sold by the seller at Rs. 82 lakhs and not at Rs. 60 lakhs. In other words, the revenue is not entitled to take a ....