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TMI Blog2004 (10) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... eing disposed off by this consolidated order, for the sake of convenience and brevity. 3. Shri N.M. Mathew, learned representative for the assessee submitted that there was a survey in the assessee s premises on 6-2-2001. A statement was recorded from the Managing Director, Shri K.K. Mohanan.The learned representative further submitted that the business of the assessee was lending loan on hire purchase and lending gold loan. The assessee has collected 36% as interest on such loans. However, in the books of account only 18% was recorded. The learned representative of the assessee submitted that the company authorised the Managing Director to collect only 18% as interest on the loan advanced on gold as well as on hire purchase. However, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [2003] 263 ITR 101 1 . 5. On the other hand, Shri K.K. John, learned departmental representative, submitted that the assessee is a private limited company. There was a survey operation under section 133A of the Act on 6-2-2001 in the business premises of the assessee. According to the learned D.R. the assessee- company is lending loan on gold jewels and on hire purchase. In the course of survey operation a statement was recorded from Shri K.K. Mohanan, managing director of the company. The managing director admitted that an average interest of 36% was collected on gold loan and hire purchase loan. The managing director has also agreed to file a revised return for the assessment years under consideration. However, on 13-2-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment was completed originally under section 143(3) of the Income-tax Act, 1961. There was a survey operation under section 133A and a statement was also recorded from the managing partner of the assessee. In the course of making such statement, the managing partner offered an amount of Rs. 43 lakhs as additional income for three assessment years. The Assessing Officer after considering the statement made by the assessee during the course of survey and also the other materials available on record determined the business income at 8%. But the administrative Commissioner found that the order of the Assessing Officer in taking the profit at 8% was erroneous and prejudicial to the interest of the revenue. Accordingly he revised the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ath and to take any sworn statement. After going through the facts and circumstances of the case, the High Court found that the various materials gathered in the course of survey the Income-tax Officer had exercised a judicial discretion in the matter while completing the assessment. The Assessing Officer has verified the voluntary disclosure made by the assessee with books of account and it was after verification and consideration of various material aspect and related facts, the Assessing Officer accepted the offer made by the assessee. In those circumstances, the High Court found that the order of the Assessing Officer could not be said to be erroneous and prejudicial to the interest of the revenue. Therefore, it was held by the High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-company has also filed an affidavit dated 20-2-2002, a copy of which is filed before this Tribunal at page 13 of the paper book. In the affidavit, the managing director categorically admits that he has collected excess interest from the customers of the assessee-company. He further states that the collection of excess interest is ultra vires to the power delegated to him by the company. In view of the subsequent voluntary admission made by the assessee in the affidavit and also in the petition filed under section 144A of the Income-tax Act, 1961, in our view, the assessee is collecting 36% of interest on the loans advanced by the assessee-company. Therefore, even after ignoring the statement recorded by the Assessing Officer under secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of 18% in addition to 18% as interest on the loans advanced by it. The commission said to be paid is only to the managing director and other director. In our view, the managing director and the other directors are equally responsible for promoting the business of the assessee-company. Therefore, the claim of the assessee regarding the payment of commission is only an after-thought. We have also carefully gone through the return filed by the managing director and other director. They have simply disclosed that the income from other sources. There is no material to show that the income disclosed by the individual directors and the managing director was with regard to the commission said to paid by the assessee-company. In the absence of any ..... X X X X Extracts X X X X X X X X Extracts X X X X
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