TaxTMI 
TaxTMI 
2017 (9) TMI 1960
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....ls] is not justified in confirming the disallowance of returned net loss of Rs. 1,05,57,700/-, under the facts and circumstances of the case. 4. The learned Commissioner of Income-tax [Appeals] is not justified in confirming the addition made by the learned assessing officer of Rs. 8,55,52,040/- as Un-explained Investment in raising Iron-Ore under the facts and circumstances of the case. 5. The learned Commissioner of Income-tax [Appeals] is not justified in confirming the finding of the learned assessing officer that the statements extracted from the appellant under section 132[4] of the Act and under section 131[A] of the Act, are proved to be false and incorrect are still valid and binding to make assessment in terms of section 115 of the Evidence Act under the facts and circumstances of the case. 6. The learned Commissioner of Income-tax [Appeals] failed to appreciate that the principles of estoppel are not applicable to the tax proceedings and further consent cannot confer jurisdiction that the so called voluntary statements inducted by the learned assessing officer were proved during the course of proceedings that the statements on an wrong premise ....
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.... Hon'ble Tribunal nor before the learned Commissioner of Income-tax [Appeals] I Bangalore. These grounds do not involve any investigation of any facts otherwise on the record of the department and are also pure question of law. It is humbly prayed before this Hon'ble Tribunal that the additional grounds may kindly be admitted and disposed off on merits for the advancement of substantial cause of justice. Reliance is placed on the decision of the Hon'ble Apex Court in the case of National Thermal Power Company Limited Vs. CIT, reported in 229 ITR 383 and also on the ratio of the decision of the Hon'ble Karnataka High Court in the case of Gundathur Thimmappa & Sons Vs. CIT, reported in 70 ITR 70. ADDITIONAL GROUNDS OF APPEAL 1. The order of assessment passed by the learned assessing officer under section 143 [3] of the Act is bad in law for the reason that learned assessing officer after rejecting the books of the appellant ought to have passed an order under section 144 of the Act on the facts and circumstances of the case. 2. The Appellant craves leave of this Hon'ble Tribunal to add, alter, amend, delete or substitute any of the grounds urged above. ....
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....ss of extraction and sale of iron ore under the name M/s. Sun Minerals at Chikkanayakanahalli in Tumkur District. A search was conducted at the assessee's residential premises and also B M Farookh of Fiza Developers and Inter Trade Pvt. Ltd., in Bangalore and Mangalore. No search warrant was issued in the name of the assessee. The learned counsel for the assessee further contended that during the course of statement recorded by the AO, it was stated by the assessee that he did not maintain the books of accounts. Therefore, there cannot be any question for excess stock found during the course of search or survey. So far as the source of investments are concerned, it was stated that assessee had agricultural income which was initially invested in the business of mining. It was further contended that the valuation of this stock was not properly done by the so called valuer as he has not followed the basic principles. It was further contended that assessment was not framed under section 153A. It was framed under section 143(3) after issuing notice under section 142(1) of the Act. The learned counsel for the assessee further contended that during the course of assessment proceedings, as....
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....aving heard the rival submissions and from careful perusal of the orders of the lower authorities and material available on record, we find the search and seizure operation was also conducted upon the assessee along with B. M. Farookh as is evident from the panchanama appearing at page Nos. 51 and 62. In this panchanama, joint warrant was issued in the name of B. M. Farookh of M/s. Fiza Developers and Inter Trade Pvt. Ltd., and the assessee. During the course of search, uninventorised books of accounts were also found. These excess stocks of iron ore lying at the business premises of the assessee at chikkanayakanahalli was also found during the course of survey conducted. The excess stock was valued by Shri. K. Nagabushan, Mining Engineer and Registered Valuer, who after having conducted a professional survey submitted the valuation report on 18.03.2008 valuing the investment in raising a stock at Rs. 11,10,01,980/-. The valuation report was confronted to the assessee during the course of statement recorded on 31.03.2008. In response thereto, the appellant has admitted the additional income of Rs. 11,10,01,980/- for the assessment year 2007-08 and 2008- 09. He however stated that h....
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.... all the benefits available under section 132(4) may be granted to me for the above offer." 9. Thereafter, the valuer has made a professional survey of the stock of iron ore at the mines of the assessee and submitted valuation report on 18.03.2008. The valuation report was confronted to the assessee and his statement was recorded on 31.03.2008. Having examined the valuation report, the assessee has come forward to offer an amount of Rs. 10,10,01,980/- for taxation in his hands for assessment year 2007-08 and 2008-09. The relevant portion of statement recorded on 31.03.2008 is extracted hereunder for the sake of reference: "Q.9: While giving your sworn statement U/s 132(4) of the I T Act on 14.03.2008 in your answer to Q.3 you had stated that you will arrive at the actual amount of investment in raising the iron ore stock available in the mines, as per the valuation report of the Mines Engineer Sri Nagabhushan, since you have not maintained proper books of accounts for the above period. I am giving you the copy of the valuation report dt 18.3.2008 submitted by Sri K Nagabhushan, panel valuer and Mines Engineer. He has estimated that 5,62,324 MTs of different varieties of....