TaxTMI 
TaxTMI 
2010 (10) TMI 1208
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.... the same assessee involving common issue arising out of materially similar set of circumstances which were heard together. As a matter of convenience, therefore, all the appeals are being disposed off by way of this consolidated order. 2. Brief facts of the case are that Shri Jayant B. Patel, owns proprietary business concern in the name and style of M/s. Universal Taste Maker and M/s. Universal Flavours & Fragrance, being run from the premises 07, 120 and 133, New Apollo Industrial Estate, Morga Village Road, Andheri (East), Mumbai. The assessee had interest in the companies M/s. Unique Aromatics P. Ltd. and M/s. Specialty Food Ingredients P. Ltd. the business of these concerns is manufacturing and sale of proprietary items being food ....
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.... 60,000 9,08,959 9,19,540 Income From Other Sources Interest On Bank FD 6,034 Canpep-92 10,000 Canpep-91 10,000 26,034 Income of Minor son Punit J. Patel Bank Interest 600 FD Bank Interest 819 1,419 Less; Exempt U/s 10(32) (1,419) 26,034 Gross Total Income 13,71,278 Less: Deduction under Chp.VIA U/s 80L Dividend & Bank Intt. 6,034 U/s 80D Mediclaim 7,498 13,532 Total Income &nbs....
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.... in A.Y. Amount of LTCG Gross sale of shares being amount cr. In the books 1. Jayant B. Patel Database Finance Ltd. Suryadeep Salt Refinery & Chemical Works M/s. Osian LPG 2003-04 2004-05 2006-07 9,91,739 8,45,138 4,48,949 10,11,382 8,92,265 4,67,600 2. Jayant B. Patel (HUF) Database Finance Ltd. 2003-04 4,89,807 5,00,962 3. Cheryl J. Patel Database Finance Ltd. Suryadeep Salt Refinery & Chemical Works M/s. Osian LPG 2003-04 2004-05 2006-07 4,89,807 6,30,414 4,28,189 5,00,962 6,64,990 4,50,800 4. Punit J. Patel Database Finance Ltd. M/s. Osian LPG 2003-04 2006-07 3,76,358 51,67,981 3,94,250 53,84,21....
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....respect of long term capital gain shown at Rs. 51,16,798 in Table-A, Shri Jayant B. Patel, admitted that the said amount will be disclosed by him in the hands of respective assessees of his group for respective A.Ys, for being taxed at normal rates. The Assessing Officer has reproduced the letter of assessee in Para-8 of the assessment order. He further noted that purchase of shares shown as "Total" at 53,84,213, 17,37,611, and 41,85,824 in the Table-A, B and C respectively, were got accomplished through the entities controlled by Shri Narendra R. Shah, who categorically admitted that no actual purchases were made of the aforesaid shares, on behalf of the aforesaid four parties by the concerned Shri Jayant B. Patel, Smt. Cheryl Jayant Patel....
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.... 18,25,163 19,39,063 96,953 8. He also made addition of 5% towards service charges of Rs. 19,953. The assessee had also shown agricultural income in the hands of Shri Jayant B. Patel, Smt. Cheryl Jayant Patel, Shri Punit Jayant Patel and the HUF M/s. Jayant B. Patel. The Assessing Officer issued detailed query to the assessee which has been reproduced in para-19 of his order. He observed that the assessee failed to establish the performance of or carrying out of agricultural operations and further there was no third party evidence. He, therefore, added the impugned amount as "Income From Undisclosed Sources". 9. The assessee, being aggrieved by the stand of the Assessing Officer, carried the matter in first appeal, wherein, bef....
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....me-tax Officer wrote two letters dated 14th January and 10th February 1955 to the Manager of the Bank making enquiries about the remittance. Reliance was placed on these letters for making additions. The Hon'ble Supreme Court in Krishnachand Chellaram (supra), has held as under:- "....... The statements of the manager in those two letters were based on hearsay, as, in the absence of evidence, it could not be taken that he must have been in charge of the Madras office on October 16, 1946, so as to have personal knowledge. The department ought to have called upon the manager to produce the documents and papers on the basis of which he made the statements and confronted the assessee with those documents and papers. It was true ....