TaxTMI 
TaxTMI 
2017 (7) TMI 39
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.... trade name. The Revenue had discovered four invoices and delivery notes upon carrying out a survey of the business premises of the assessee. The aggregate value of the goods as per the said invoices amounted to Rs. 4,66,300/-. The said aggregate value was added as undisclosed business income by the Assessing Officer, as also percentage profit on such goods presumed to have been sold. Furthermore, during scrutiny proceeding it was noticed that the assessee had submitted a stock statement as on 29th February, 2008 before State Bank of India, Bankura Branch in the matter of obtaining enhanced credit facilities. The said stock statement stood verified and acted upon by the Bank. This stock statement showed value of stock far in excess of the s....
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....te Tribunal was justified in not holding that four purchase Bills amounting to Rs. 4,66,300/- which had not been entered in the regular books of accounts of the assessee is to be treated as business income of the assessee. (e) Whether the order of the Income tax Appellate Tribunal sustainable for the deletions of Rs. 4,66,300/- when the assessee admittedly following the mercantile system of accounting and therefore the assessee is liable to be accounted for which he failed." Mr. Dutta, learned advocate appeared on behalf of the Revenue and submitted that even if all the bills were not received by the parties, that did not prove the purchases were not made. The assessee had issued authorization letter to the truck driver to take delive....
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....her loan facility. In any event, the mere statement of the assessee in that behalf could never be accepted. The Tribunal has considered all relevant materials in this behalf and its view is reasonable. There was no material before the Commissioner of Income tax indicating that the bank did not exercise effective control. The assessee did not have any material to show that raw materials could not be obtained from the open market. He produced only a certificate from the Director of Industries given to a sister concern allegedly having similar business. The Commissioner of Income tax did not take into consideration the possibility of the assessee obtaining raw materials from irregular sources. The grounds stated by the Commissioner of Incom....
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....third party unless there is material to corroborate that statement of the assessee given to a third party, even if it be a bank. The mere fact that the assessee had made such a statement by itself cannot be treated as having resulted in an irrebuttable presumption against the assessee. The burden of showing that the assessee had undisclosed income is on the Revenue. That burden cannot be said to be discharged by merely referring to the statement given by the assessee to a third party in connection with a transaction which was not directly related to the assessment and making that the sole foundation for a finding that the assessee had deliberately suppressed his income. That the burden is on the Revenue to prove that the income sought to....
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.... Relaxo Footwear reported in (2003) 259 ITR 744, to submit that when the Tribunal had on appreciation of evidence found on a question of fact, as in that case, there should be no interference. He next relied on a decision of the High Court of Gujarat in the case of CIT vs. Riddhi Steel and Tubes (P) Ltd. reported in (2013) 40 taxmann. Com 177 (Gujarat), to paragraph 9.2 therein as is reproduced below: "9.2. It is a settled law, as rightly held by the Tribunal, that only on account of inflated statements furnished to the banking authorities for the purpose of availing of larger credit facilities, no addition can be made if there appears to be a difference between the stock shown in the books of account and the statement furnished to the b....
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....d the authorization letter to the driver to take the delivery of goods from the supplier, Truck no. also mentioned therein. Photo copies of the relevant portion of authorization letter issued to the driver to take delivery of goods, delivery challan and Purchase invoice/bills/cash/credit memos have been placed on record. It is crystal clear that assessee has purchased goods of worth Rs. 466300/- during the F.Y. 2007-08. In light of the above discussion it is concluded that the assessee has undisclosed purchase of Rs. 466300/- has been made from undisclosed business income during the financial year 2007-08. Therefore, the sum of Rs. 466300/- is treated as undisclosed business income of the assessee and is added to his total income under the ....