Law:

Section:

Section 147 of the Income-tax Act, 1961 - Income escaping assessment - Non-disclosure of primary facts - Assessment year 1995-96 - Whether where notice under section 148 had been issued to assessee on basis of seized sale bill books relating to unaccounted sales made by assessee, which had not been considered and made basis for estimating unaccounted income in original assessment proceedings,belief of income escaping assessment formed on basis of seized material could not be said to be without any basis - Held, yes FACTS The assessee was engaged in the business of manufacture and sale of pan masala including Gutkha. The assessee's business and residential pre- mises were searched by the authorities. At the same time, the business premises of 'R', was also searched, who was alleged to be a bulk purchaser of Gutkha of the assessee and certain books of account and documents were seized. Accordingly, the assessment was made under section 143(3) whereby on the basis of seized sale bill books and statement of 'R', certain addition was made to the income of the assessee. On appeal, the Commis-sioner (Appeals) deleted addition. The appeal filed by the revenue against the order was pending before the Tribunal. In the meantime, the assessing authority issued notice under section 148 stating therein that the assessee had failed to disclose in his return the sales of certain sum made to 'R' as admitted by the assessee and in consequence, income chargeable to tax had escaped assessment for the assessment year 1995-96. In petition, the assessee submitted that the material which was seized from the premises of 'R' was considered at the time of original assessment order and that at the time of issue of the notice, there was no material on the basis of which belief of income escaping assessment could be formed and, therefore, notice under section 148 was invalid and liable to be quashed. HELD A perusal of the assessment order showed that unaccounted sales at Rs. 49,14,445 was estimated from the seized sale bill books SB-23, SB-49, SB-54, SB-55, SB-56, SB-57, SB-58, SB-59 and SB-100 and the undisclosed profit at Rs. 9,74,334 was estimated on the aforesaid undisclosed sales while…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492