9911796707
TMI Blog2008 (6) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... essments were made as protective measure in the hands of both the persons – Before CIT(A) they claimed the existence of AOP – CIT(A) assessed in the hand of AOP – ITAT reversed the order of CIT(A) - held that – AOP was inexistence – Agreement is not required to proved AOP – ITAT order reversed – Assessment to be made in the hands of AOP X X X X Extracts X X X X X X X X Extracts X X X X ..... ressed by the department before us is ITA 11 of 2002 pertaining to assessment of association of persons completed under Section 147 of the I.T. Act for the assessment year 1986-87. The income assessed at the hands of association of persons is from two contracts of slaughter tapping undertaken for Vijaya and Mukkattumala Estates and income under both the contracts was assessed in the hands of association of persons. Therefore if ITA No. 11 of 2002 is allowed by this Court, then department cannot press ITA Nos. 9, 10 & 13 of 2008 pertaining to individual assessment of one of the members of the association of persons assessing the income from the very same contracts. Similarly ITR 87 of 2000 also cannot be pressed by the department wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T (Appeals) while challenging individual assessment order. In other words, contrary to the statement made before the CIT (Appeals), based on which individual assessment was cancelled by the first appellate authority, the assesees had not offered the income for assessment in the hands of association of persons. Therefore the CIT (Appeals), decided the case on merits. The seized documents contained details of investments made in the slaughter tapping business, sale proceeds received for sale of rubber latex and rubber trees and the periodical payments made to the estate owner pursuant to the contracts undertaken for slaughter tapping. The case put forward by one of the association of persons that is Mr. M. Syed Alavi that he was an employee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivery notes were used by the assessees to transport rubber to the purchasing company, namely, Supersonic Rubber Industrial unit, to which they sold the rubber received on slaughter tapping. The main point canvassed by respondents-assessees is that no agreement for slaughter tapping of Mukkattumala Estate is recovered during the course of search. Failure on the part of the department to recover written agreement does not affect the validity of assessment, because in this case accounts which are seized from both the assessees and complementary to each other conclusively establish the slaughter tapping done by the assessees togehther in Mukkattumala Estate, whereunder they have made periodical payments to the estate owner and default is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the first appellate authority. We fail to understand the basis on which the Tribunal set aside the income escaping assessment. In any case, income escaping assessment is made on the basis of documents seized in the course of search and it's validity is beyond challenge. We are surprised to note that the Tribunal has disposed of the appeal without considering the details recorded and the findings on facts by the first appellate authority based on seized records in his order. 4. In view of the above findings, we reverse the order of the Tribunal and restore the assessment confirmed in first appeal. Accordingly I.T.A. No.11 of 2002 is allowed. 5. In the light of the above order, we do not think the question raised in ITR 87 of 2000 requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
