2017 (10) TMI 873

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....ated 29.09.2008. According to the assessee, the assessee firm has been taken over by a Private Limited Company called MMU Metaliks Udyog (P) Ltd. (hereinafter referred to as the 'Company'). Brief facts of the case are that the assessee is a firm carries out business of wholesale trading of iron and steel. The assessee firm was taken over by a company in the name and style of M/s. MMU Metaliks Udyog (P) Ltd. on and from 01.09.2008 by an agreement of take over drawn out on 28.08.2008. (The AO notes that this fact was not intimated to the department). On 29.09.2008, a survey was conducted u/s. 133A of the Income-tax Act, 1961 (hereinafter referred to as the "Act") in the business premises where the assessee firm used to conduct business before....

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.... purchase. Another addition of Rs. 45,921/- was added back to the total income of the assessee as unexplained cash. Aggrieved by the aforesaid additions made by the AO, the assessee preferred an appeal before the Ld. CIT(A), who was pleased to confirm the same. Aggrieved by the order of ld. CIT(A), the assessee is before us. 3. We have heard rival submissions and gone through the facts and circumstances of the case including the Hon'ble High Court's order in assessee's various writ petitions filed at various stages of the assessment proceedings. The only question that needs to be addressed is whether the discrepancy found in stock of pig iron, scrap and cash can be assessed in the hands of the assessee firm or not. The Hon'ble Supreme Co....

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....31.08.2008 which goes on to show that the assessee firm discontinued the business from 01.09.2008, so it was duty bound to intimate within fifteen days as per sec. 176 of the Act to the department the fact of business being taken over by the private limited company. So, the department's survey u/s. 133A of the Act cannot be faulted with when the facts remain as per the explanation to section 133A(1) of the Act, undisputedly, the books of account of the assessee firm identified as MMU-1 to MMU-4 were found from the business premises. Even if the survey for argument sake is held to be illegal, still the evidence collected therein are admissible in evidence because in India, like England admissibility of the evidence is based on relevancy as h....