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TMI Blog2024 (10) TMI 1152X X X X Extracts X X X X X X X X Extracts X X X X ..... had proceeded solely on the basis of what had come to be recorded in the course of the Sales Tax survey. It becomes evident that the AO not only failed to independently examine those allegations, it also abjectly failed to enquire and ascertain the status of the proceedings under the Sales Tax statute. If that had been done, it would have found that there existed no demand or assessment against the assessee on the relevant date. CIT (A) while dealing with the aforesaid and while negating the objections relating to the assumption of jurisdiction u/s 148 had chosen to rest its view on a prima facie formation of opinion. The said decision is thus clearly rendered untenable and unsustainable on this ground alone. As correctly decided by ITAT impugned information regarding survey by Sales Tax Department has been solely used by the Assessing Officer in letter and spirit for formation of belief of escapement of income without making any enquiry or application of mind, particularly when subsequent proceedings before various authorities of Sales Tax Department were available before issuance of notice u/s. 148 and were got acknowledged to the AO before passing the reassessment order. In pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General Industries Limited, a dealer of Toyota Car, was conducted on 11.05.2006by a team of Enforcement Branch of the Department of the Trade taxes. During the survey proceedings, it is established that the dealer, M/s Hari Steel general Industries Limited, was generating higher value of invoices from Toyota Dealer Management System (TDMS), centrally controlled by the Principal, M/ s Toyota Kirloskar, Bangalore and since the dealer could not fiddle with the original invoices of higher value (MRP fixed by the Principal) same price centrally controlled through TDMS, he devised a parallel TDMS invoices or maintained a parallel software for generating lower value of invoices for the same transactions and deposited the tax according to lower value of invoices. Considering the material on records, it is found that issue's involved in this case relates to Assessment Year 2005-06 and 2006-07. Further, from the perusal of the above facts and records, it is clear that M/s Hari Steels and General Ind. Ltd. has suppressed the turnover by maintaining duplicate set of books. It is noted that he turnover suppressed is the income concealed for the income tax purposes. The difference in turnov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modus operandi used by the appellant in declaring sales at a lesser value than the one mandated by the Toyota Kirloskar India Ltd, was found during the survey/search operation. This information certainly constitutes a new material for the Ld. AO, based on which he was justified in reopening the assessment. Further, the appellant's plea that it had made full and true disclosure in the return of income is also not acceptable since if there is an allegation by another statutory authority based on search/survey operation suggesting that the appellant may have suppressed the actual value of sales, the same implies that the appellant may not have made full and true disclosure of income . This, however docs not bar the appellant to furnish explanation before the Ld. AO during the re-assessment proceedings on merit, which the AO is duty-bound to take on record. However, prima facie, the circumstances discussed above clearly show that full and true disclosure was not made by the appellant while filing the return of income. I also find that following the issue of notice under Section 148, the appellant was provided with the copies of reasons recorded by the AG. However, the appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40,457/- and the matter was remitted to the AO for making fresh 'assessment on the basis of actual material evidences, which could not be produced by the assessee due to the premises, having been sealed. The assessment in pursuance to above order is still pending. 20.03.2012: Notice u/s 148 was issued on the basis of information received from Investigation Wing, giving the details of survey by Enforcement Branch of Sales Tax Deptt. The position of demand/suppression made by authorities of Sales Tax Deptt as well as revenue authorities below us, on the basis of subject survey is summarized as under:- Suppressed sale as per Survey team : Rs. 21,16,38,052/- Suppressed sale as per order dated 29.01.2008 : Rs. 3,82,55,045/- As per Appeal order of Spcl. Commissioner: Trade Taxes Deptt. : Rs. 1,09,40,457/- Suppressed sales worked out by Assessing Officer u/s. 147 : Rs. 21,16,38,052/- Suppression worked out by ld. CIT(A) (i). Sales : 3,82,55,045 (ii). Purchase: 62,89,918 : Rs.4,45,44,963/- 8. As is manifest from the above, on the date when the notice under Section 148 had come to be issued, there were no outstanding demands or orders of assessment on the basis of the survey which had b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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