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TMI Blog2015 (6) TMI 874X X X X Extracts X X X X X X X X Extracts X X X X ..... hrough other proprietorship concerns i.e. M/s Udai Traders and M/s R. P. Products, proprietorship concerns of Shri. Udai Chand Chaurasia and Shri. Raj Kumar Chaurasia respectively. It was also noticed by the search party that the assessee has made payment of excess excise duty. All these facts were not examined by the Assessing Officer while completing the assessment in order to work out the excess production and sales out of the books of account. Therefore, we are of the view that the ld. Commissioner of Income-tax has rightly held that the assessment orders are erroneous and prejudicial to the interest of the Revenue. - Decided against assessee. - ITA Nos.636 to 642/LKW/2014, ITA Nos.643 to 649/LKW/2014, ITA Nos.650 to 656/LKW/2014 - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Despite granting of last opportunity, no effort was made by the assessee either to file the paper book or to make necessary preparation for prosecuting the appeals. Accordingly, these appeals were listed for hearing on 20.3.2015 and on this very day, the ld. counsel for the assessee has chosen not to appear before the Tribunal. Since none appeared on behalf of the assessee despite having knowledge of date of hearing, we have no option but to hear the appeals ex-parte in the light of the Instruction issued by the Head Office of the Tribunal that appeal filed against the order passed u/s. 263 of the Act should be heard on priority basis. Accordingly, the Revenue was heard. 4. There are three bunches of appeals of Chaurasia group arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale through these proprietorship concerns were not examined by the Assessing Officer in his order. The ld. Commissioner of Income-tax accordingly issued a show cause notice under section 263 of the Act and in response thereto assessee has filed written submissions. The ld. Commissioner of Income-tax has taken into account the written submissions and was of the view that with respect to the unexplained investment in properties, the issue was discussed by the Assessing Officer, but so far as excess production of Pan Masala pouches by M/s Durga Trading Company, proprietorship concern of Smt. Asha Chaurasia and its sale through M/s Udai Traders, proprietorship concern of Shri. Udai Chand Chaurasia and M/s R. P. Products, proprietorship concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased on the test run of packaging machine conducted at the time of search on the factory premises and subsequent statement recorded on oath of laborers and statement of Shri Udai Chand Chaurasia is said to have agreed to the speed of packaging machine at the time of test run. This undisclosed production by assessee's concern M/s Durga Trading Company has led to the generation of undisclosed yearly gross profit in hand of assessee which erroneously not considered while formulating the assessment for A.Y. 2004-05 to 2009-10. Since the existence of undisclosed production of panmasala/ gutkha by M/s Durga Trading Company is established beyond doubt. This undisclosed production has been routed through M/s Udai Traders , before reaching th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral) recommending action u/s 263 of the I.T. Act on this point. No supporting records, evidence of any consumption of material, excise duty records or any other similar asset which might have been generated out of this income ( other than those surrendered in the course of search ) have been indicated by the Addl. CIT (Central). The assessee on the other hand has produced excise records as well as of operation of machine on various dates. It is also not mentioned that all the machines are capable of operating on such higher speed for such long time. In order to come to a definite conclusion that there has been production outside the books by running machine at higher speed , there should have been some corroborative evidence to show higher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nducted test run of Pouch Packaging Machine in order to ascertain the production of pouches of Pan Masala and arrived at a conclusion that excess production was made by the assessee i.e. M/s Durga Trading Company, proprietorship concern of Smt. Asha Chaurasia and the products were sold through other proprietorship concerns i.e. M/s Udai Traders and M/s R. P. Products, proprietorship concerns of Shri. Udai Chand Chaurasia and Shri. Raj Kumar Chaurasia respectively. It was also noticed by the search party that the assessee has made payment of excess excise duty. All these facts were not examined by the Assessing Officer while completing the assessment in order to work out the excess production and sales out of the books of account. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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