9911796707
TMI Blog2015 (8) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals of the Revenue. 3. The appeal was admitted on the following substantial questions of law : "1. Whether the statement recorded under section 132(4) of the Income-tax Act can be ignored or overlooked, which is free from any ambiguity or extraneous circumstances ? 2. Whether the normal course of assessment under section 143(3) cannot be adopted and, accordingly, estimate of income of the entire period on the basis of bills/vouchers found for a few days or part period can be made as the assessment in this case relates to pre-block period assessment ? 3. Whether the Income-tax Appellate Tribunal was justified in approving finding of the Commissioner of Income-tax (Appeals) which has no reasonable basis for reaching to conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -91 1,52,690 2,74,750 1,75,000 1989-90 55,430 2,67,168 1,76,000 1988-89 14,020 1,84,100 87,500 1987-88 6,400 1,66,250 70,000 2,28,540 8,92,268 5,08,500 5. The Commissioner of Income-tax (Appeals) held that the grievance of the appellant was that the additions made were totally unjust, in regard to the recorded transactions. The appellant had maintained different details, by way of books of account, bills, etc. The decline in the gross profit was due to the fluctuation in the market, and thus, there was no justification in observing that trading addition was required, relating to books of account maintained by the appellant. With regard to the additions made, it was held that the appellant had surrendered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any other matter, relevant for any proceeding under the Act. 8. In the present case, the Tribunal held that the assessments, on estimation, were not permissible, on the face of the material, which was found during the search, and statement made by the assessee. The assessing authority went beyond the material and the statement in making assessment on a higher side, on the basis of estimation. 9. Learned counsel appearing for the assessee relied upon the statement made by the assessee, from which we find that, at the time of recording statement making surrender, the assessee had stated that such surrendered amount may be adjusted from the sales, in the statement of accounts, which have been recorded in the blue and red diaries, which wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the red and blue diaries, should be accounted, subject to the verification of credits entered in the diaries, and thereby, reducing the amount of surrender, to that extent. 12. We do not find any error in the findings of the Tribunal, that the statements made during search, must be correlated with the records, which are found, and if there is any ambiguity, the explanation given by the assessee should be taken into consideration, before making the assessment. The legal position with regard to the undisclosed income from the diaries, does not need any elaboration, however, if the material found during the search, does not tally with the statement records, and that the statement is made subject to the material, which has been seized, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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