×Latest Case Laws on Income Tax by various Income Tax Appellate Tribunals in India
These are the latest case laws decided by various Income Tax Appellate Tribunals (ITAT) of India on Income Tax which have been published recently. The case laws are open for discussion and we invite expert comments from our members on its applicability and effect on relevant issues.
This bunch of cross appeals by revenue and two different assessees in IT(SS)A 2/Ind/2004, IT(SS)A 15/Ind/2004 & IT(SS)A 19/Ind/2004 and cross objection
by the assessee in CO No.17/Ind/2004 against IT(SS)A 2/Ind/2004 pertaining to the block period from 1.4.1990 to 16.5.2000, A.Y. 1991-92 to 2000-01 and block period 1.4.2000 to 16.5.2000. All these appeals were taken up together and are being disposed of by way of a consolidated for the sake of convenience and brevity.
2. First we take up the cross appeals of the assessee and revenue in IT(SS)A No.15/Ind/2004 and IT(SS)A No.19/Ind/2004. The assessee has raised following grounds of appeal:
1.On the facts and in the circumstances of the assessee’s case the Ld. CIT(A) has erred in holding that valid search warrant was issued, and search conducted was legal and valid.
2.On the facts and in the circumstances of the assessee’s case the Ld. CIT(A) has erred in holding that notice u/s 158 BC and assessment order there after was legal and valid.
3.On the facts and in circumstances of the assessee’s case the Ld. CIT(A) has erred in holding that the assessee has made undeclared purchase and sale of Rs.81,43,956/- and Rs.27,92,521/- respectively.
4.On the facts and in circumstances of the assessee’s case the Ld. CIT(A) has erred in holding Gross profit rate @ 5.5%
5.On the facts and in circumstances of the assessee case the Ld. CIT(A) has erred in confirming addition of Rs.13,040/- towards unrecorded expenses.
6.On the facts and in circumstances of the assessee’s case the Ld. CIT(A) has erred in holding that the assessee has made investment of Rs.8,15,000/- in unrecorded transaction.
3. At the time of hearing, Ld. Counsel for the assessee submitted that he does not wish to press ground Nos.1&2. Accordingly, ground Nos.1 & 2 were dismissed as not pressed.
4. The facts giving rise to the present appeal are that search operations were carried out at the shop and residential premises of the assessee. Simultaneously, search operations were also carried out at the business premises and residential premises of Shri Bhagwandas Chabaria and their sons and at the factory premises of M/s. Krishna Enterprises. In course of search & seizure operation, a large number of loose papers, books of accounts, note books were found and seized from shop as well as residential premises of the assessee. A notice u/s 158 BC of the Income Tax Act, 1961 (hereinafter called as ‘the Act’) was issued and served on the assessee requiring the assessee to furnish its return of income for the block period. After giving some time, the final return was filed on 4.3.2002 disclosing a total undisclosed income for the block period at Rs.4,50,000/- and the assessee requested for the adjustment of tax payable at Rs.2,73,000/- out of the cash seized from his residence. During the course of assessment special audit was directed by the concerned assessing officer with the prior approval of the concerned Commissioner of Income Tax, Bhopal. In pursuance of this direction, audit of the accounts of the assessee was carried out and an audit report u/s 142(2A) of the Act was filed on