2003 (5) TMI 32 - HC - Income Tax

During the course of search under section 132 of the Income-tax Act 1961 certain incriminating material had been recovered from the residential and business premises of the assessee and its partners and the assessment has been framed on the basis of such material. The assessee was also found to have purchased substantial quantity of sarson outside the books of account. Since the books of account maintained by the assessee were not reliable the assessment had to be made in the light of the material recovered during the search. In this process some element of estimate was unavoidable Thus we cannot say that assessment order is legally not sustainable as it is based on conjectures and surmises and presumptions - In the appellate jurisdiction under section 260A this court normally does not interfere by substituting its own estimate in place of the one of the Tribunal unless it is shown that the estimate of the Tribunal could not possibly be reached.

Summary

The High Court of Punjab and Haryana upheld the Income-tax Appellate Tribunal's order on certain additions made in the block assessment of the assessee. The court found that the findings were based on facts and did not raise substantial questions of law. The assessment was made based on incriminating material recovered during a search, as the assessee's books of account were not reliable. The court dismissed the appeal, stating that they do not interfere with the Tribunal's estimate unless shown otherwise.