Law:

Section:

SECTION 149 OF THE INCOME-TAX ACT, 1961 - ASSESSMENT - ADDITION TO iNCOME Where during survey assessee's manager gave a statement that certain goods allegedly transferred by assessee to another business concern were in fact not transferred, and transfer value of such goods was taken as unaccounted sale, no question of law arose from Tribunal's order sustaining addition [In favour of revenue] [Assessment year 1990-91] Latha S. Nair v. CIT [2009] 309 ITR 256/226 CTR (Ker.) 267 The assessee, dealing in brass and metal articles, claimed transfer of vessels to the value of Rs. 2,21,059 from her proprietary shop to the another business concern which was a kalyanamandapam maintained by the assessee. The Department conducted a survey in the assessee's premises on 29-6-1992. The assessee's manager gave a statement to the effect that the goods stated to have been transferred by the assessee to the kalyanamandapam were not in fact transferred and the articles were not found there. Based on this evidence, the Assessing Officer verified the books of account. The assessee was found to be not maintaining proper bills or vouchers for the purchase or sales. Consequently, the transfer value accounted by the assessee was taken as unaccounted sale and the Assessing Officer, consequently disallowed the loss claimed by the assessee. Held that the goods stated to have been transferred from one business concern to another obviously did not reach or were not found on inspection and the assessee's manager gave a statement confirming the same. In these circumstances, the Assessing Officer was perfectly justified in rejecting the books of account. When the rejection of books of account was proper and when the assessee's manager gave a statement contrary to the assessee's statement, no further enquiry or evidence needed be taken by the Tribunal. Therefore, there was no justification in remanding the case. There was no substantial question of law arising from the order of the Tribunal upholding the assessment which was based on facts found during survey conducted by the Department and based on the statement of the assessee's manager. P. Balachandran for the Applicant. P. K. R. Menon and…

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