AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (3) TMI 554
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.... Ms.Aasifa Khan, learned counsel for the respondent-assessee. 3. This appeal under Section 260A of the Income Tax Act, 1961 (briefly "the Act" hereinafter) has been preferred by the Revenue assailing the order dated 9th September, 2016 passed by the Income Tax Appellate Tribunal, "B" Bench, Mumbai ("the Tribunal" for short) in Income Tax Appeal No.4347/Mum/2015 for the assessment year 2008-09. 4. Be it stated that Income Tax Appeal No.937 of 2017 pertains to assessment year 2009-10, whereas Income Tax Appeal Nos.1121 and 1135 of 2017 pertains to assessment year 2008-09. All the appeals were disposed of by the Tribunal vide the common order dated 9th September, 2016. 5. On the request of Mr. Walve, Income Tax Appeal No. 937 of 2017 ....
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....ome is assessed as business income ignoring the fact that the said business is only of giving accommodation entries?" 7. Respondent is an assessee under the Act engaged in the business of manufacturing and trading in precious and semi-precious stones and jewellery in the name and style of M/s Sunshine Import and Export Private Limited. Assessee is a company having two Directors-Shri Paras Jain and Shri Saurabh Garg. 8. A survey under Section 133A of the Act was carried out in respect of the respondent/assessee. During the post survey proceedings, statement of one of the Directors i.e. Shri Saurabh Garg was recorded. In one of his statements he was reported to have stated that respondent provided only bill entries and there was no actu....
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....directed to delete the income as estimated by him and to accept the book results declared by the assessee. 11. Aggrieved, Revenue is in an appeal before us raising the above questions for consideration. 12. Submissions made by learned counsel for the parties have been considered. 13. At the outset, we may reproduce relevant portion of the order passed by the Tribunal which is as under:- "13. Further from the record we found that the assessee is mainly engaged in the imports of diamonds and sales in local markets to exporters who export the goods. The import of diamonds is done through customs authorities and banking channel in India. The import of diamonds undergoes appraisal process by the appraisers appointed by t....
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....ignored by A.O. while making the reassessment: a. Copies of bank statement for the relevant year. b. Ledger copies of various purchases parties for A.Y. 2008-09 and 2009-10. c. The Xerox copies of purchases invoices of parties for A.Y. 2008-09 and 2009-10. d. The relevant copies of the daily stock Register. e. Confirmation from various sale parties. f. Details of interest received from various parties. g. Details of unsecured loan along with confirmation. These documents prove that the assessee is not engaged in issuing accommodation bills and acting as a dummy for importing diamonds bills. Thus, the contention of the ld. AO that the bills issued by the assessee are all....
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....g diamond bills. In arriving at such finding Tribunal noted that the survey party did not find any incriminating evidence and material that could establish the stand taken by the Assessing Officer. There was no dispute to the fact that no incriminating evidence was found on the day of the survey. It was also noted that merely on the basis of statement of one of the directors i.e. Shri Saurabh Garg that too recorded after 20- 25 days of the survey could not be a basis for bringing into assessment and making any addition to the income without further supporting or corroborative evidence. Statement recorded under Section 133A of the Act not being recorded on oath cannot have any evidentiary value and no addition can be made on the basis of suc....
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....able with the Assessing Officer" contained in Section 158BB of the Income-tax Act, 1961, would include the materials gathered during the survey operation under Section 133A, vide Commissioner of Income-tax v. G.K. Senniappan [(2006) 284 I.T.R. 220]; (iv) The material or infomration found in the course of survey proceeding could not be a basis for making any addition in the block assessment, vide decision of this Court in T.C. (A) No.2620 of 2006 (between Commissioner of Income-tax v. S.Ajit Kumar); (v) Finally, the word "may" used in Section 133A (3)(iii) of the Act, viz., "record the statement of any person which may be useful for, or relevant to, any proceeding under this Act, as already extracted above, makes it clear t....