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TMI Blog2010 (5) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the Assessing Officer against the alleged deficiency of stock found during the course of search and also the addition made towards undisclosed sources were unwarranted. 3. These two appeals were heard and disposed by the Tribunal, Bangalore 'C Bench through their common order dated 10-11-2003 in which both the appeals were allowed by the Tribunal. 4. Thereafter the matters were taken before the Hon'ble High Court of Karnataka at Bangalore by the revenue through IT Appeal Nos. 312 and 313 of 2004. IT Appeal No. 312 of 2004 related to the case of M/s Sunrise Sales Corporation and IT Appeal No. 313 of 2004 related to the case of M/s Balaji Agencies. 5. Common questions of law were placed by the revenue before their Lordships. The firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion, their Lordships have set aside the common order of the Tribunal dated 10-11-2003 with a direction to dispose of the matter afresh. 7. That is how the matters have come before us, for the second time. 8. We heard Shri G. Lakshminarasimhan, the learned counsel appearing for the assessees and Smt. Swathi Patil, the learned CIT appearing for the revenue. The learned counsel has placed before us a paper book containing his arguments and relevant papers to support and highlight his arguments. The learned CIT has filed paper books prepared by Shri Ashish Tripathi, the Asstt. CIT at Bangalore (assessing authority), wherein the details of documents relied on by the revenue are available with the detailed contents. 9. In fact, the issues ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dividuals. Passing of judicial orders by making reference to similar orders already passed is not a process unknown to judicial administration. Copies of the orders of the Tribunal passed in such similar cases are also very much available on record before us. 11. As a case, the order of Tribunal, Bangalore Bench 'C' passed in the case of Smt. Hemalatha D. Shah v. Dy. CIT [2004] 1 SOT 857 available on record may be perused. That case also was framed under the very same set of facts and circumstances. In p. 4 of the Tribunal order, the Hon'ble Members have observed as follows : "...... The assessee has disclosed in the balance sheet as on 15-11-1999, stock that was inventoried by the Dy. Director of IT at the time of search. Sales disclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to show that there was a deficit of physical stock at the time of search when compared to the book stock. The stock inventory was a running statement of items of what was found at the time of verification. The stock inventory does not go beyond that. Further, it is seen that the Assessing Officer has made out a case of deficit not exactly on the basis of the comparison between the book stock and physical stock. The Assessing Officer has estimated the anticipated gross profit by adopting the GP rate and after adjusting sales, purchases etc., against the estimated sales, the balance was taken as the physical stock that should have been available with the assessee. The actual physical stock verified at the time of search was thereafter com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has given the statement. This is a fundamental rule of evidence. When the person who has initially deposed before the revenue against the assessee does not turn up for cross-examination the edifice of the evidentiary value built on the statement of that person collapses. It is the rule of law; nobody can help it. Therefore, we find that the statement as such is not the omnipotent evidence against the assessees. 14. In fact we have gone through almost all the papers available onrecord along with the new paper books and materials placed by theparties before us. But we have given more stress on two materials whichaccording to the learned CIT have not been considered by the Tribunalwhile passing the first round of order against which the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X
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