Law: Qanun-e-Shahadat (10 of 1984)

Section: 114

The learned Tribunal has held that “in view of Article 114 of the Qanune-Shahadat Order (X of 1984) at no stage the assessee could deny from admissions endorsed to the Department in writing disclosing the concealed purchases and operation of Bank Account for making purchases permitting the Department to believe a thing to be true and to act upon such belief”. FACTS/HELD 1. The department collected information that various payments were made to District Food Controller (DFC) on behalf of company from bank account of a person who was not director of company. The company neither showed maintenance of any bank account nor creditors were appearing in the balance sheet for the relevant years. Case was reopened u/s 65. After issuance of statutory notices, the company admitted maintenance of benami bank account and offered to be taxed on agreement basis. This offer was not accepted and assessment was completed by taxing peak credit of the year u/s 13(1)(aa) and by applying G.P. rate on concealed purchases from DFC. 2. Held that under “Article 114 of the Qanun-e-Shahadat Order (X of 1984), the Director of the company is debarred from denying the facts admitted in order sheet after accepting the allegations. We are therefore, of the considered opinion that in view of Article 114 of the Qanun-e-Shahadat Order (X of 1984), in no manner and at no stage the assessee could deny from admissions endorsed to the Department in writing disclosing the concealed purchases and operation of Bank Account for making purchases permitting the Department to believe a thing to be true and to act upon such belief. Neither the scriber of the statement nor his representative could be allowed to deny the truth of declared facts. In the circumstances, we further find that addition of peak credit for the year in Benami Bank Account at Rs. 3,50,000/-, Rs. 1,650,000/-, Rs. 2,667,500/-, Rs. 600,320/- and Rs. 100,000/- for the assessment years 1995-96 to 1999-2000 respectively appears to be justified as based on admitted facts”. 3. The CIT(A) confirmed the addition in the head concealed purchases, where G.P. rate of 3.6% has been applied resulting in trading addition of Rs. 1,122,093/- which is…

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