D.C.I.T., Central Circle-XIX Vs. MBL Infrastructure Ltd. (ITAT Kolkata)- All the impugned entries were analysed by the assessee company in detail and the entry to entry correlation with the cash workings filed by the applicants before the Honourable Settlement Commission were submitted by the assessee before the lower authorities. The entries of disclosed nature were also correlated with the regular books of account of the concerned persons and copies of relevant extracts of the regular accounts were filed with the A.O. As such, the ownership of the undisclosed entries by the concerned applicants and due reflection of disclosed entries in regular books of account were categorically established.
Thus, the assessee company successfully rebutted the presumption of ownership of seized documents marked MBL-1 u/s 292C of the Act. The onus now shifted on the Department to disprove the claim of the assessee company by bringing on record cogent evidence in support thereof. The AO failed miserably to discharge such onus. On the other hand, the ld. CIT(A) after taking into the submissions of assessee, orders of the Settlement Commission and copies of the ledger accounts has rightly deleted the same. Therefore, we upheld the same and dismiss the appeal of the revenue.
INCOME TAX APPELLATE TRIBUNAL, KOLKATA
ITA Nos. 1056 & 1057/Kol/2009
Assessment Years : 2004-05 & 2005-06
D.C.I.T., Central Circle-XIX
Versus
MBL Infrastructure Ltd.
Date of Hearing : 27.10.2011.
Date of Pronouncement : 07.12.2011.
ORDER
Per Shri C.D.Rao, AM
The above appeals are filed by the Revenue against the order dated 13.03.2009 of the ld. CIT(A)-Central-II, Kolkata pertaining to A.yrs.2004-05 and 2005-06 respectively.
2. There is a delay of 2 days in filing of the appeal by the Revenue for which Revenue has filed a con-donation petition explaining the reasons for such delay. After considering the submissions by Revenue the delay is condoned.
3. The brief facts of the case are that search and seizure operations u/s 132(1) of the Income –Tax Act, 1961 (hereinafter referred to as the Act) were conducted at the residence and business premises of the various members of Maheswari Brothers Group on 1910.2005 and subsequent dates. Survey operations u/s 133A of the Act were also conducted in the premises of :
i) MBL Infrastructure Ltd. (formerly Maheshwari Brothers Ltd. – present assessee company) at Burnpur, West Bengal and “B” Avenue, Sarojini Nagar, New Delhi.
ii) M/s. Maheswari Steel Processors at RIP Industrial Estate, Durgapur, West Bengal.
3.1. In response to notice issued u/s 153A(a) of the Act, the assessee company filed its return of income on 05.04.2007 and 30.03.2007 for A.Ys. 2004-05 and 2005-06 respectively, declaring total income at NIL for both the years. As per the provisions of section 115JB, the assessee declared book profits of Rs. 5,87,68,118/- and Rs. 7,35,20,045/- for A.Y. 2004-05 and 2005-06 respectively.
3.2. In course of the search and seizure operations, various assets, books of accounts, documents and papers were seized/impounded from the residential and business premises of the different members of the Mahaeswari group. These included seized documents bearing identification marks MBL-1, MBL-2, MBLC – 1 to 21 & CPU C/2 seized form the office of the assessee company in Kolkata. The seized documents contained mixed entries, both of disclosed and undisclosed nature, of various members of the Maheswari group.
3.3. All the undisclosed entries contained in the documents seized from the premises of the assessee-company were also owned up by the applicants above named and the resultant undisclosed income was offered for taxation before the Honourable Settlement Commission. The said fact was brought to the notice of the Assessing Officer dealing with the assessment of the assessee company under section 153A of the Act. The Assessing officer, however, ignored the submissions of the assessee company and completed the assessments for the impugned assessment ears at astronomical figures on the basis of the same seized documents viz. MBL-1 already covered in the applications filed before the Honourable Settlement Commission. The additions made by the AO for the impugned assessment years and the seized documents reference on the basis of which the said additions were made may be summarised as under :-
