2018 (1) TMI 1082

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.... appeals are being adjudicated by this composite order. 2. Despite the service of notices, there was none to represent the case of the assessees. Considering the covered nature of the issues raised in these appeals, we proceed to adjudicate the appeals with the assistance of Ld. DR for the Revenue. 3. Before us, at the outset, Ld. DR for the Revenue submitted that these are the cases where DGCEI of the Excise Department, Government of India conducted searches and found the assessees were engaged in clandestine removal of the goods which are produced outside the books of account. Ultimately, the assessees offered unaccounted additional income relatable to the said unaccounted production/unaccounted sales. He mentioned that the offers of th....

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....f Bhagyalaxmi Steel Alloys Pvt. Ltd. and Shree Om Rolling Mills Pvt. Ltd. (supra), we are of the opinion that the issues raised in these appeals stand covered by the said decisions in favour of the assessee and against the Revenue. For the sake of completeness of this order, we proceed to extract the operational paras hereunder of the said orders of the Tribunal hereunder. In the case of ACIT Vs. Bhagyalaxmi Steel Alloys Pvt. Ltd. (supra) the Tribunal decided the issue in favour of the assessee by holding in Para No.28 as under : "28. From the above, we find the CIT(A) has considered all the aspects which led the assessee to disclose 982.82 units per MT which include that the assessee maintained the records properly and the books of acco....

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....he clandestine sale of unrecorded production needs to be confirmed, even if the related profits of Rs. 76,48,922/- is estimated applying the flat rate of 4%. Ld. AR for the assessee argued that the said income is arrived at by the assessee again based on the estimation on the estimated sale of the goods clandestinely removed by the assessee. The unrecorded production was also the product of estimation by the DGCEI and eventually the same was accepted by the Settlement Commission. Absence of any incriminating material in support of the said clandestinely removed goods, its quantity and also earning of precise amount of income of the said goods, authorities resorted to estimations. Revenue is not privy to the relevant facts (1) precise quanti....