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TMI Blog2015 (9) TMI 537X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2008-09 the Commissioner of Income-tax(A) confirmed the addition - Held that:- The decision that may be taken for the assessment years 2002-03 to 2007-08 may have its impact for the assessment year 2008-09 also. Therefore, for the sake of consistency and to have comprehensive adjudication, this Tribunal is of the considered opinion that the issue for the assessment year 2008-09 also needs to be considered. Accordingly, the orders of the lower authorities for assessment year 2008-09 are also set aside and the issue of suppressed sales turnover and profit is remitted back to the file of the assessing officer. The assessing officer shall decide the issue afresh in line with the direction issued for the assessment years 2002-03 to 2007-08 after providing opportunity of hearing to the taxpayer.- Decided in favour of assessee for statistical purpose. Addition with regard to the credit received from George Joseph - Held that:- This Tribunal finds that giving one more opportunity to the taxpayer to prove the identity of the creditor, genuineness of the credit and capacity of the creditor may not prejudice the interest of the revenue. In respect of suppression of sales fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hyper Market, Kollam three note books marked as MSP-1, MSP-2 MSP-3 were found and seized. These note books contained accounts for purchase and issue of gold ornaments. When these note books were compared with regular register maintained by the taxpayer there was wide variation in the accounting of purchase and sales of gold jewellery. The ld.representative further pointed out that Commercial Tax Department inspected the taxpayers premises on 24-02-2006 and it was found by the Commercial Tax Department that the taxpayers were selling the gold ornaments only through estimate slips. However, the Commissioner of Income-tax(A) deleted all the additions on the ground that there was no material unearthed during the course of search operation. According to the ld.representative, the material available on record clearly shows that the gold jewellery was sold on the basis of the estimate slip which was not recorded in the books of account and no sale bills were issued. Referring to the judgment of the Kerala High Court in Commissioner of Income-tax vs Hotel Meriya ITA No.551 of 2009 and submitted that the Commissioner of Income-tax(A) is not justified in deleting the addition. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the customers at their requests on their purchase. The customer decides to purchase the jewellery after identifying the patent and model of jewellery after comparing the price in the estimate slip and sale bills will be issued. Therefore, the addition which was confirmed by the Commissioner of Income-tax(A) for assessment year 2008-09 is not justified. The ld.counsel placed his reliance on the decision of this Tribunal in Martha Enterprises vs DCIT in ITA Nos 269 to 275/Coch/2010 order dated 24th January, 2011 and submitted that where no material was available with respect to any assessment year, there cannot be any estimation of suppressed sales turnover and profit. The ld.counsel has also placed reliance on the decision of this Tribunal in P.A. Kuriakose in ITA Nos.455 to 461/Coch/2010 dated 04-05-2011 and submitted that in the absence of any material evidence for assessment years 2002-03 to 2007-08 there cannot be any addition. Therefore, according to the ld.counsel, the Commissioner of Income-tax(A) has rightly deleted the addition made by the assessing officer. 5. We have considered the rival submissions and also perused the material available on record. Admittedly, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars 1995-96 to 1996-97. Apart from the materials recovered at the time of search sworn statement was also recorded by the department wherein one of the partners admitted in his statement before the officers that the taxpayer s firm was practicing suppression of sales from day to day basis through out the assessment year not only during the assessment years 1996-97 and 1997-98 but also during the earlier assessment years 1986-87 to 1995-96. Based on the material found during the course of search operation and the admission of the partner in the sworn statement, the assessing officer made addition towards suppression of sales. This was confirmed by the Tribunal. When the matter travelled to the High Court the High Court found that with reference to the addition made for assessment years 1986-87 to 1995-96 no doubt there is no material but it is admitted by the partner of the firm that the taxpayer has practiced suppression of sales turnover. Accordingly, the High Court found that the authorities are justified in making the addition. In the case before us also though the estimate slip found by the revenue authorities relate to assessment year 2008-09 the cashier, Shri Joshi Abraham sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue afresh after reconsidering all the statements recorded and the material found during the course of inspection by the Commercial Tax Department, all the materials including the materials collected during the course of search operation and thereafter decide the same in accordance with law after giving a reasonable opportunity to the taxpayers. 7. Now coming to appeal for assessment year 2008-09 the Commissioner of Income-tax(A) confirmed the addition. Therefore, the taxpayer has filed the appeal before this Tribunal. For the assessment years 2002-03 to 2007-08 the matter is remitted back to the file of the assessing officer to examine the statement recorded during the course of search operation and the other materials available on record including the seized materials. Therefore, the decision that may be taken for the assessment years 2002-03 to 2007-08 may have its impact for the assessment year 2008-09 also. Therefore, for the sake of consistency and to have comprehensive adjudication, this Tribunal is of the considered opinion that the issue for the assessment year 2008-09 also needs to be considered. Accordingly, the orders of the lower authorities for assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohanakala (supra) merely because the money was transferred through banking channel it will not prove the genuineness of the transaction. It is for the taxpayer to prove the identity of the creditor, creditworthiness of the creditor to give the gift and the genuineness. Since no material was filed except the entries in the bank passbook the Commissioner of Income-tax(A) also confirmed the addition. This Tribunal finds that giving one more opportunity to the taxpayer to prove the identity of the creditor, genuineness of the credit and capacity of the creditor may not prejudice the interest of the revenue. In respect of suppression of sales for all the assessment years the matter was remitted back to the file of the assessing officer. Therefore, for the sake of consistency, the addition of ₹ 3,47,580 also needs to be reconsidered after giving reasonable opportunity to the taxpayer. Accordingly, the orders of lower authorities are set aide and the issue of addition of ₹ 3,47,580 is also remitted back to the file of the assessing officer. The assessing officer shall examine the issue afresh and thereafter decide the issue in accordance with law after giving reasonable opport ..... X X X X Extracts X X X X X X X X Extracts X X X X
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