9911796707
TMI Blog2010 (9) TMI 1173X X X X Extracts X X X X X X X X Extracts X X X X ..... e decisions based on by the Assessing Officer? 2.The respondent-assessee is engaged in the business of ship breaking. Search action under section 132(1) of the Act had taken place in the case of Madhupuri Group. During the course of search and the post search inquiries, on the basis of statement of Shri Mahendra H. Shah it was found that he was engaged in the activity of issuing accommodative entries of loans and purchase/sales to various parties against receipt of cash from them. In the said statement, Shri Mahendra H. Shah had not specifically stated the name of the assessee. The Assessing Officer on the basis of the statement of Shri Mahendra Shah, was of the view that the assessee had also obtained entries through various concerns o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he statement nor any evidence was found during the course of the search. 5. The Tribunal has, accordingly, recorded that it was an admitted fact that no material had been found during the course of search that the assessee had actually realized more sale consideration than that recorded in the books of accounts. That Shri Mahendra H. Shah had not specifically mentioned the name of the assessee to prove that the assessee was engaged in recording any bogus sales. The Tribunal noted that the Assessing Officer had made the addition merely on the basis of estimate by taking 15% of the sales made by the assessee to be the suppressed consideration received by the assessee. The Tribunal upon verification of the copies of the ledger accounts as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, as is apparent from the facts noted hereinabove, it is an admitted position that during the course of search no material had been found to show any undisclosed income of the assessee. No evidence had been found to indicate that assessee had realized sale consideration other than that recorded in its books of accounts. For the purpose of holding that the assessee had sold goods to fictitious parties at a price 25% higher than that shown in the bills, the Assessing Officer had mainly placed reliance upon the statement of Shri Mahendra H. Shah recorded under Section 132 (4) of the Act. However, as noted hereinabove, Shri Mahendra H. Shah had not specifically mentioned the name of assessee. Thus, no material had been found at the time o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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