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TMI Blog2014 (1) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... al found during the course of search operation and the statement recorded u/s 132(4) of the Act is not available on record - on the basis of mere oral and written submission, the Tribunal is not in a position to determine at whose hands the profit has to be assessed. The CIT(A) has restricted the turnover ignoring the seized material which discloses huge remittances by the assessee - the seized material and the statement recorded u/s 132(4) of the Act in the course of search operation in the premises of Shri E Shamsuddin are relevant factors to be considered - It is also necessary to confront the assessee with material found during the course of survey and search operation and the statements recorded during the course of those proceedings – the matter remitted back to the AO for fresh adjudication – decided in favour of Assessee and Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... gross profit at 13.52%; however, for the assessment year 2006-07 the CIT(A) confirmed the estimation made by the assessing officer. 4. The ld. Senior counsel submitted that certain materials were also found and impounded during the course of survey operation in the premises of the assessee. On the basis of the material found relating to cash remittances by the assessee to Shri E Shamsunddin, the assessing officer estimated the total turnover. According to the ld.representative, the material found at the time of survey was not corroborated by any other material. The assessee was also not provided with any opportunity to examine those materials and rebut the same. According to the ld.senior counsel, the assessing officer has no material to estimate the turnover and profit of the business. Therefore, the entire estimate was made on the basis of presumption and guess work. The CIT(A), without any basis restricted the same and confirmed part of addition made by the assessing officer. According to the ld.senior counsel, the CIT(A) has not considered even the argument notes filed before him. On a query from the bench what is the relationship between the assessee and Shri E Shamsuddin si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the very same day after net turnover was remitted to Edapallykotta shop. 6. The ld.DR further submitted that as per the information contained in seized documents, more particularly, the document marked as VJJ-III(17) snf 30, the total remittance from the assessee shop at Palayathode to Shri E Shamsuddin's shop is Rs.1,69,95,228 from December, 2004 to March 2005. The average turnover of every month comes to Rs.49,45,459. The yearly turnover comes to Rs.5,09,85,684. Therefore, the assessing officer estimated the gross sales at Rs.4.75 crores as against Rs.49,45,459 disclosed by the assessee. 7. The ld.DR further submitted that the CIT(A) estimated the sales at Rs.1 crore for the assessment year 2005-06 even though the total remittances was Rs.1.6 crores as per the seized documents. This is just for four months. Similarly, the total remittances upto 31-03-2004 is Rs.6,05,88,354 as per the seized document. However, the assessee declared the sales only at Rs.48,17,244. In view of the material found during the course of search operation, according to the ld.DR, the assessing officer has rightly made the addition. The CIT(A) is not justified in restricting the addition ignoring the seiz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the case of the revenue is that the entire net turnover was remitted to his father at Edappallykotta. In those circumstances, it has to be ascertained whether Shri E Shamsuddin was doing business at different places through his sons and relatives? If that is so, the profit has to be assessed only in the hands of Shri E Shamsuddin. However, this Tribunal could not decide the issue in the absence of any material on record. The material found during the course of search operation and the statement recorded u/s 132(4) of the Act is not available on record. Therefore, on the basis of mere oral and written submission, this Tribunal is not in a position to determine at whose hands the profit has to be assessed. The CIT(A) has restricted the turnover ignoring the seized material which discloses huge remittances by the assessee. In those circumstances, this Tribunal is of the opinion that the seized material and the statement recorded u/s 132(4) of the Act in the course of search operation in the premises of Shri E Shamsuddin are relevant factors to be considered. It is also necessary to confront the assessee with material found during the course of survey and search operation and the st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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