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TMI Blog2015 (6) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Department contains the allegation of the Excise Department that the assessee has suppressed sales for the purpose of making payment of excise duty. A perusal of recorded reasons does not show that the AO verified the particulars declared by the assessee in its income-tax return. Nowhere in the recorded reasons, the sale declared by the assessee in its income-tax return, has been brought on record. The AO, as per the recorded reasons, has not verified the income-tax return of the assessee vis-à-vis the alleged escapement of income to arrive at the satisfaction to the effect that the assessee has not disclosed such income in the return of income, and has concluded that the alleged sales, on which the excise duty was allegedly not paid by the assessee, was income chargeable to income-tax, and has escaped the assessment under the Income Tax Act. - Decided in favour of assesse. - ITA Nos.122, 123 And 124/RJT/2013, ITA Nos.166, 167 And 168/RJT/2013 - - - Dated:- 27-2-2015 - N. S. Saini, AM And Kul Bharat, JM,JJ. For the Appellant : Shri M L Meena, CIT-DR For the Respondents : Shri Vijay Ranjan, Adv. Shri J C Ranpura, CA ORDER Per: Bench: 1. ITA No.122/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return on 8.12.2006 disclosing total income at ₹ 27,29,510/-. The assessment was completed under section 143(1) of the Act at the same figure. Similarly for Asstt.Year 2007-08, the assessee filed its return on 29.10.2007 disclosing total income at ₹ 70,24,240/-. The assessment was completed under section 143(1) of the Act at the very same figure. 6. Thereafter, the AO issued notice under section 148 of the Act for escapement of income assessable to tax for the Asstt. years 2005-06, 2006-07 and 2007-08 all dated 23.12.2011, and the reasons recorded for reopening of the assessment reads as under. The reasons recorded for all the years are exactly similar. 1. The assessee is engaged in the business of manufacturing of ceramic tiles. The case of the assessee was centralized with this Circle with the sole purpose of assessing the income of the assessee, in light of the various financial irregularities noted and unearthed by the Directorate General of Central Excise Intelligence, Ahmedabad Zonal Unit. As per their finding, there is suppression of sale of ₹ 18,46,87,977/- and such irregularities have been highlighted in the show cause notice of the excise depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation in the matter and factory premises of the assessee was covered under search on 17.1.2008 during which several incriminating documents were recovered, which lead to the confirmation of the intelligence. Records and documents as listed in the annexures to the panchnamas dated 17.1.2008 drawn at the factory premises of the assessee, were seized by them for further investigation. Report on such detailed investigation is contained in the show cause notice issued by the Excise department. In the said report, corroborative evidences were also gathered and kept on record by the Excise department. Hence, the said report of the excise department is foolproof and there is substantial material evidence of suppression of sale. The show cause notice by the Excise department also quantified the extent of suppressed sale. 3. I have, therefore reasons to believe that the assessee's income to the above extent has escaped assessment within the meaning of section 147 of the I T Act and that, such escapement was by reason of the omission and failure of the assessee to disclose fully and truly all material facts. Hence, the assessment is required to be reopened. 7. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and accordingly, issued show cause notice, a copy of which was received by him from CIT, Central-2, Ahmedabad. Thereafter, the AO recorded the background under which the DGCEI made investigation and search in the case of the assessee and the background under which show cause notice came to be issued in the case of the assessee by the DGCEI. 16. According to the AO, the report contained in the show cause notice of Excise Department is foolproof, and there is substantial material evidence of suppression of sales and the said show cause notice also quantified the extent of suppressed sale. According to the AO for the above reasons, he believed that the assessee's income to the extent of the sale found by the Excise Department to have been suppressed for levy of excise duty has escaped assessment under the Income Tax Act, and such escapement was for omission and failure on the part of the assessee to disclose fully and truly all the material facts. He, therefore, issued notice under section 148 of the Act for all the years under consideration. 17. We find that the AO, in the above recorded reasons, has concluded that the show cause notice issued by the Excise Department is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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