TaxTMI 
TaxTMI 
2006 (10) TMI 129
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.... as follows : 4. The assessee is a company. Besides other activities of business, it was also manufacturing vanaspati oil. It had been supplying vegetable oil to the traders including M/s. Vishwakarma Oil Traders, Kanpur. The said firm was having wholesale licence for holding the vanaspati oil. The Income-tax Department had conducted a search in the premises of Gopal Das Gupta and a rough cash book was seized, which contained certain transactions. It was found that Gopal Das along with Kanhaiya Lal and Badri Prasad were carrying on business in vanaspati oil under the name and style of M/s. Vishwakarma Oil Traders. The rough cash book found during the search operation was for the period from January 2, 1974, to March 29, 1974. The cash book was examined by the Income-tax Officer and he found the following payments had been made by M/s. Vishwakarma Oil Traders to the assessee-company and these payments were made as on money : Date Amount (Rs.) 1. 22-1-1974 19,212 for 800 tins 2. 23-1-1974 19,000 3. 25-1-1974 6,760 4. 28-1-1974 18,700 5. 29-1-1974 3,391 6. 31-1-1974 9,000 7. 5-2-1974 18,000 8. 6-2-....
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....ot arise at all because it is No. 2 affair for both the parties. Since the cash book in question found at the time of raid is an original record of transaction which must be relied upon because no body would write these transactions separately, it is not a secret affair for their personal gains and this rough cash book was never intended to be for either Income-tax or sales tax purposes. Had it not been found in raid the whole matter would have been gone unnoticed either in the assessment of Gopal Das or in the case of the assessee. The amount of Rs. 1,25,559 is, therefore, held to be the part of the receipt of the sale price of vanaspati ghee which was sold by the assessee. This amount is, therefore, the income of the assessee and assessed in its hands as such." 6. The assessee being aggrieved filed an appeal before the Commissioner of Income-tax (Appeals). The assessee contended that it was maintaining regular accounts which were audited and the vegetable oil product was governed by the Vegetable Oil Product Control Order and there was no question of any price being charged in excess of the price fixed by the Government. It was alleged that the rough cash book was scrap book w....
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....said M/s. Vishwakarma Oil Traders may be summoned and their statements on oath should be recorded and made available to us. Due and proper opportunity must also be allowed to us to cross-examine each of them. We shall meet the cost for along with a copy of the said application this purpose and shall be glad to deposit the same on hearing from you." (emphasis supplied) 8. After hearing the parties and perusing the contents of the prayer, the Tribunal had concluded that the prayer indicated that the assessee had desired that the statements of the partners and the employees of M/s. Vishwakarma Oil Traders and of any other persons, as recorded by the Department, may be furnished to the assessee and if no such statement have been recorded, then the said persons may be summoned and their statement should be recorded on oath and due opportunity should also be provided to the assessee to cross-examine each of them. The Tribunal has also held that as the statement had been recorded during the assessment proceedings of M/s. Vishwakarma Oil Traders and the copies of such statements have been provided to the assessee, no question arises for summoning the said persons for providing the asses....
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....viding the copies of the statements of the partners and the employees of M/s. Vishwakarma Oil Traders and of any other persons as recorded by the Department. The applicant had requested for summoning the partners and the employees of M/s. Vishwakarma Oil Traders for recording the statements on oath and for giving an opportunity to cross-examine each of them. According to Sri Chopra, as the statement had already been recorded and no fresh statements were to be recorded, the assessing authority had provided the copies of the statements and had given full opportunity to the applicant to meet the same. It is incorrect to state that the applicant had asked for an opportunity to cross-examine the person whose statement had already been recorded before June 30, 1977. In the circumstances, he submitted that the Tribunal had rightly held that no question arose for summoning the persons for providing an opportunity to cross-examine them. 12. We have given our anxious consideration to various pleas raised by learned counsel for the parties. 13. It is not in dispute that the adverse material which was found by the Income-tax authorities during the course of search in the business premise....