9911796707
TMI Blog2013 (11) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... aid issued are discussed in brief. The assessee is a dealer in Raw Rubber and carrying on business under the name and style "Uniroyal Polymers". He filed his return of income for the year under consideration on 25.8.2005 declaring a total income of Rs.61,038/- and agricultural income of Rs.50,000/-. His case was selected for scrutiny. The AO received an information from the Income tax Officer, Ward-4, Kottayam to the effect that the assessee herein had received a sum of Rs.46.55 lakhs from a Trust called Kuriakose Elias Trust, Trivandrum during the financial year 2004-05 in settlement of his dues, which are due from a person named Shri M.R. Somarajan, Amba Rubber Industries, Thampalakkadu, Kanjirappally, Kottayam District. It was stated tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Rs.85.25 lakhs payable to him. It was also stated that the payment of Rs.46.55 lakhs to Mr. Alex George will be treated as if the said amount has been paid by Shri M.R. Somarajan and received by Sri Alex George and that he will never be making any claim in respect of the said amount. This letter of authorization was executed on a stamp paper with the value of Rs.50/-. However the payment of Rs.46.55 lakhs was made only in the year 2004 as detailed below:- Cheque No. of South Indian Bank Date Amount 277785 05.04.2004 5,00,000 277792 17.04.2004 15,00,000 277794 22.04.2004 15,00,000 277799 28.05.2004 11,55,000 46,55,000 A final agreement was entered on 28.05.2004 in full and final settlement of all the rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Nemon Village for and on behalf of Mr. Piouse Scariah, Alex George, Kanjirappally Rubbers, George Kottaram and subsequently agreements were executed between Kuriakose Elias Trust and myself for and on behalf of the above parties on 10.07.1995, 05.01.1996, 28.03.1996 and 19.11.1996....." However, in the sworn statement taken from Shri M.R.Somarajan on 07.8.2007, he stated that he does not know the assessee herein and further stated that he did not have any financial dealing with the assessee. He further stated that it was another Alex George with whom he was having dealings and the said person only received money from Kuriakose Elias Trust. 7. A sworn statement was also taken from the assessee herein on 07.8.2007, wherein he also stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hew Thayyil, the secretary cum treasurer of the Kuriakose Elias Trust, since the AO had relied upon the statement taken from the above said person bythe ITO, Ward-4, Kottayam. In the sworn statement taken on 14.10.2008, Fr. Mathew Thayyil deposed - that Shri Alex George insisted for cash payment, - that he has obtained stamped receipt on making the payments, - that those receipts were signed by Alex George in his presence, - that Alex George himself wrote two receipts, - that a final agreement was entered on 28.5.2004 by the president of the trust, M.R. Somarajan and Alex George, -that the Alex George is the assessee herein only who has written and signed the stamped receipts while collecting the amounts. - that he knows Mr. Alex Geo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a well settled proposition of law that the strict rule of evidence is not applicable to the income tax proceedings and the issues can be decided on the basis of preponderance of probabilities. Hence, the opinion given by an expert may be taken as one of the factors and the same cannot be taken as conclusive proof. 14. On a careful analysis of entire aspects, we notice following contradictions with regard to the impugned issue:- (a) In the letter of authorization written by Shri M.R. Somarajan, the address of Shri Alex George was written as under:- Mr. Alex George S/o K.C. George, Ponnadamvackel House, Palai - 686575, Kottayam. However, we notice that the tax authorities have not taken any step to verify this address in order to asce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remains that both the parties are in rubber trade/mfg. Further the assessee herein has furnished the assessment details of M.R.Somarajan in the Grounds of Appeal filed before Ld CIT(A). One cannot deny fact that the assessment details of another person cannot be normally obtained without any relationship. Hence, the veracity of the claim made by both the parties creates doubt. (e) Fr. Mathew, Thayyil, the Secretary cum Treasurer of M/s Kuriakose Elias Trust has confirmed the identity of the assessee in his sworn statement and he did not retract from it during the course of cross examination conducted by the assessee himself. He has further stated that he knows the assessee since 2002. It is pertinent to note that Fr. Mathew, Thayyil is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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