2013 (12) TMI 1678

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....997-98 to 2002-03 and upto the broken period of A.Y 2003-04 till 27.11.2002. 3. The appeal has been preferred by the department on following substantial questions of law:- "1. Whether Hon'ble ITAT has erred in law as well as in the facts and circumstances of the case by dismissing the appeal of the revenue holding that presumption u/s 132 (4A) of Act is confined in reference to documents/material seized during the course of search for the purpose of its application u/s 132B, and therefore not available for framing assessment. The order of the ITAT is per incurium, as the ITAT has not appreciated the provisions contained in law as per Sec.292C inserted by Finance Act, 2007 w.e.f. 1.10.1975, where it has been clearly laid down tha....

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....(A) did not agree. The ITAT found that the presumption under Section 292C (1) is rebutable. The assessee requested the AO to enquire from M/s L. Kant Paper Mills and its Managing Director Shri Laxmi Kant Agarwal as to the nature of entries of persons, who were also assessed by the same AO, and in whose cases the block assessment proceedings for the same block period were pending. The AO did not make any investigation from these persons. The assessee also submitted an affidavit of Shri Laxmi Kant Agarwal dated 29.11.2004 on which the AO observed that he had already completed the assessment on 29.11.2004. The CIT (A) sought a remand report on the said affidavit from the AO. The AO, for the reasons best known to him, did not examine Shri Laxmi....