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TMI Blog2013 (3) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... Authorities and the AO, therefore, has no power to scrutinise the return submitted by the assessee to the Commercial Tax Department and accepted by the said authorities. AO has no jurisdiction to go beyond the value of the closing stock declared by the assessee and accepted by the Commercial Tax Department. In this case Tribunal, therefore, rightly found that the Department could not have made the addition merely on the basis of the statement of third parties - in favour of assessee. Insofar as the assessment year 2002-03 is concerned, no materials seemed to have been placed by the assessee viz., the sales tax returns for the said year before the authorities below . Even the Tribunal in its order has not referred to the sales tax r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer believed that the income chargeable to tax had escaped assessment on the reason that the assessee had discounted drafts/cheques received from various parties including M/s.M.Periasamy Gounder Co. This information was received by the Assessing Officer from the Deputy Director of Income Tax (Investigation), Erode based on the materials seized during the course of action under Section 132 of the Income Tax Act in the premises of M/s.M.Periasamy Gounder Co. and one E.P.Thiyagarajan, the proprietor of the said firm. Therefore, the Assessing Officer found that there was excess turnover in all those assessment years. The assessee explained before the Assessing Officer that she was not maintaining any records and addition coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounder Co which shows that the assessee had discounted drafts/ cheques received from various parties including the said company. It is also contended that though the assessee was given sufficient opportunity to explain the discrepancies, she had not disproved the same and therefore the addition made by the Assessing Officer is correct. 4. Per contra, the learned counsel for the assessee submitted that the issue involved in these appeals is covered by the decision of this Court reported in (2005) 273 ITR 262 (Commissioner of Income Tax Vs. Anandha Metal Corporation) and therefore the Assessing Officer cannot go beyond the figures available under the sales tax return filed by the assessee. 5. We heard both sides and also perused the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities. 8. The Tribunal, therefore, rightly found that the Department could not have made the addition merely on the basis of the statement of third parties. Consequently, the Tribunal set aside the order of the first appellate authority and directed the Assessing Officer to adopt the figures of turnover finally asessed by the sales tax Authorities and apply the G.P. rate accordingly. We find that the order passed by the Tribunal following the order passed by this Court in Anandha Metal Corporation case is perfectly in order and does not warrant any interference. 9. However, insofar as the assessment year 2002-03 is concerned, no materials seemed to have been placed by the assessee viz., the sales tax returns for the said year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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