Garware Technical Fibres Limited Vs DCIT (ITAT Pune)
Department cannot consider part of seized document which suits it and ignore other part: ITAT Pune
ITAT Pune held that the seized documents are to be considered as a whole and the department cannot consider a part of the seized documents which suits it and ignore the other part that does not suit it. Thus, rejection of unaccounted cash expenditure not justified. AO directed to adopt net profit ratio to derive profit on account of unaccounted cash receipts.
Facts- A search and seizure action u/s.132 of the Act was conducted in the assessee’s case on 14.11.2019. AO observed that during the course of search action, a pen drive was found from the cabin of the Head-Cashier. In the pen drive, various data including excel sheets were found wherein certain unaccounted transactions in the form of cash receipts and cash payments were mentioned. AO further observed that Head-Cashier, on being confronted by the authorized officer during the course of the search, accepted that the sales appearing in bundle nos.2 to 9 contain the year-wise summary of sales made in cash by GTFL and payments made in cash by GTFL. He had further stated that these cash receipts are on account of sale of scrap materials and the payments made in cash are on account of GEO Project BD [Business Development] payments, sales incentive payments, miscellaneous payments for official work and the same are unaccounted.
