TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 1050
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....nd working out estimated income. 5. The factum of addition not being based on any incriminating material found during the search is not disputed. 6. This aspect is borne out from the record duly taken note of by the CIT (Appeals), reproduced below : In I.T.A.No.21/2019 "4.1.4. DECISION: I have carefully considered the facts of the case, the finding of the Assessing Officer, written submissions of the appellant, the remand report and the rejoinder thereon as well as the material placed on record. The impugned addition of Rs. 13,74,332/- has been made by the Assessing Officer with the observation that 'despite giving so many opportunity, the assessee company has failed to furnish the bills vouchers, name, address, PAN & nature of credits, confirmation of creditor, TDS details etc. The assessee company has only filed copy of ledger accounts of the various creditors in its books of accounts. Therefore the assessee company has failed to prove the creditors and the same is added in the total income of the assessee". Now, in the remand report, the Assessing Officer has reported that "it is verified from the assessment record that the appellant has furnished details of all the s....
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.... or out of books purchases was found either at the premises of appellant or its directors. There is no other positive evidence to show that the assessee used 10 machines during the period relevant to A.Y. 2005-06, 06-07 and 07-08 and 8 machines during the period relevant to A.Y. 2008-09 for making unaccounted production of the 'Gutka'. (iii) The appellant has explained that 'Gutka' is exciseable goods and the Excise Department has accepted the production recorded by the appellant in its books of account. Every year the Excise Department conducts audit at the premises of the appellant and there is no order from Excise authorities stating that the assessee has suppressed production. The Excise authorities accepted the production declared by the appellant in its books of account. (iv) The appellant has further explained that the sales tax/Commercial Tax department has also accepted the turnover declared by the appellant its books of account. (v) The Assessing Officer has relied heavily on notification No.30/2008-Central Excise (NT) dated 01.07.2008 issued by Government of India, Ministry of Finance, Department of Revenue wherein Pan Masala Packing Machine [Capa....
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.... of the F.Y. 2004-05, 05-06, 06- 07 & 07-08 is concerned. (vii) It has been explained by the appellant that the machinery found during the course of search were all recorded in the books of account and no unaccounted investment in the machinery has been found by the department. (viii) The Assessing Officer has also relied upon the statement dated 10.01.2013 of Shri Gulzarilal Gupta I have gone through the statement carefully. In reply to Q. No.1 itself, Shri Gulzarilal Gupta has stated that he had been working in the appellant company as Director only since June, 2009. The appellant has also mentioned in the written submission that Shri Gulzarilal Gupta was appointed as Director only on 09.05.2009. In support of its claim, the appellant has filed copy of Form No.32 filed with the Registrar of Companies for appointment of Shri Gulzarilal Gupta, as Director. The Notification No.30 dated 01.07.2008 had already come into force when Shri Gulzarilal Gupta joined the assessee company at Gwalior. He was not a Director in the company during the F.Y. 2004-05, 05-06, 06-07 & 07-08, therefore, I agree with the contention of the appellant that the statement made by Shri Gulzarilal Gupta in ....
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....eceding the assessment year relevant to the previous year in which such search is conducted or requisition is made : Provided that the Assessing Officer shall assess or reassess the total income in respect of each assessment year falling within such six assessment years. Provided further that assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years referred to in this section pending on the date of initiation of the search under section 132 or making of requisition under section 132A, as the case may be, shall abate. Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso), specify the class or classes of cases in which the assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made. Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the ....