9911796707
TMI Blog2012 (10) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... to file additional ground as under: "The addition of Rs. 23,36,000/- made u/s 158BD is based on information obtained from external sources and does not form subject matter of the satisfaction recorded for initiating proceedings against the appellant." 4 The brief facts giving rise to the controversy in this appeal are as under: A search and seizure action under section 132 of the Act was carried out on 12/01/2001 at the official premises of M/s Anand Motor Garage at Mehta Bhavan, 311 Charni Road, Mumbai. Various books of accounts and loose papers were seized as per Annexure A of Panchnama dated 12/01/2001. Most of books of account and documents seized were pertaining to the assessee Shri Bharat Shah and his group concerns. During the course of block assessment proceedings of M/s Anand Motor Garage, proceedings under section 158 BC read with section 158 BD initiated against the assessee. Notice under section 158 BC read with section 158 BD was issued and served on the assessee on 22/1/2003. The assessee filed block return on 21/02/2003 at undisclosed income of Rs.nil. The Assessing Officer has mentioned that another block assessment under section 158 BD has been completed o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002 and in reply to question number 12, the assessee had admitted that very little exports were made to Dubai/Gulf countries. The Assessing Officer further noted that the telephone calls in the month of Number & December 2000 has been made 70 times to the telephone number 009714-2210088 at Dubai belongs to Samby Jewellery. It is not a mere co-incidence that the same telephone number is referred by the police authorities, which indulged in conversation of two persons for the hawala transaction of US$ 50,000 sent by the assessee. Accordingly, the Assessing Officer made an addition of Rs.. 23,36,000/-by taking the exchange rate at Rs. 46.72 per dollar and treated the same as undisclosed income of the assessee for the block period. 4.4 On appeal the CIT(A) confirmed the addition made by the Assessing Officer. 5 Before us the ld AR of the assessee has mainly reiterated the contentions as raised before the CIT(A) in para 5 as under: 5 So far as the payment made through Havala sources to the gangster Chhota Shakil is concerned, the AR of the appellant stated in the written submissions that while the Assessing Officer has relied on the conversation of two persons mentioned in the Police ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee indicating that the undisclosed income belongs to it. He has submitted that at any stage, during the proceedings against the person searched, the Assessing Officer is satisfied that any undisclosed income belongs to some other person, he must forth with issue notice to such other person also. 6 We have considered the rival submissions as well as relevant material on record. As far as the additional ground raised by the assessee is concerned, we note that the assessing officer has written a satisfaction note as under: "I The files seized vide Annexures A-34, A35 A--41from the premises of Anana Motor Garage pertain to Shri Bharat Shah. The same has been admitted by Shri Shah vide his statement dated 24.6.200. These annexures contain certain telephone bills. On examination of the same it is that telephone calls are made to persons in Dubai and other places with whom Shri Bharat Shah has business connection. Hence, the calls made are for business purpose and the expenditure is not an allowable expenditure. Hence the expenditure which is not allowable, has been claimed, resulting -in undue benefit /advantage to Shri Bharat Shah - 2 From perusal of Annexure A-11, it is clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the extent that the alleged phone calls were made to Dubai from the telephone of the assessee but do not establish the actual hawala payment of such amount by the assessee. 7.2 Since the police report is subject to the Court finding and judgment; therefore, until and unless the decision of the Court on the police report is available the said evidence brought on record by the Department is not sufficient to make the addition. However, we have no doubt in our mind that the seized material has established the fact that the telephone calls were made from the assessee's telephone to Dubai in which the alleged hawala transaction was allegedly done. Therefore, there is a direct connection between the seized material and the alleged hawala transaction. But since the police report itself cannot be taken as conclusive evidence, we therefore, set aside the issue to the record of the Assessing Officer to reconsider it in the light of the decision of the Court on the police report in question. 8 Ground number 2 is regarding addition of Rs. 3.50 lakhs on account of difference in book balance of the assessee and Mega Bellwood Private Ltd. 8.1 During the course of search and seizure, loose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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