Case Law Details

Case Name : M/s Girnar Impex Pvt. Ltd. Vs Commissioner of Income Tax (Punjab & Haryana High Court)
Appeal Number : ITA No. 30/2012
Date of Judgement/Order : 04/02/2013
Related Assessment Year :
Courts : All High Courts (4261) Punjab and Haryana HC (217)

Whether the material obtained during search showing a variation in expenditure may be considered as evidence for dis allowance of expenditure for a block period u/s 158BB of the Act and would not amount to assessment on estimation basis?

It has been held that the process of estimation cannot be arrived at while framing assessment, in terms of Section 158BB of the Act but assessment can be framed on the basis of material received during the course of search and seizure. Since the spiral pads, the basis of assessment in the year 2003-04 and 2004-05, were recovered during the search carried out on the residential and business premises of the appellants, we find that the dis-allowance on account of excessive coal is based upon the material recovered during the search operations. In fact, the Commissioner of Income Tax (Appeals) has given benefit to the assessee in respect of adding made in other years only for the reason that material taken in possession pertains to the year 2003-04 and 2004-05. We do not find that any question of law arises on the basis of such finding of dis allowance recorded by the Commissioner of Income Tax (Appeals) and affirmed by the Tribunal.

In respect of dis allowance of consumables, the Tribunal has set aside the findings recorded by the Commissioner of Income Tax (Appeals), inter alia, on the basis of statement of Shri Raghuvir Singh Dhiman, Factory Manager, recorded on 28.09.2004 and also the payment of cheques shown in the account of other coal traders though the payment was made to M/s S.P. Industrial Corporation. It was found that material available on record suggests the invariability of the expenses claimed by the assessee under the impugned heads. Such finding is a finding of fact on the basis of the documents recovered during the process of search.

Therefore, we do not find that any substantial question of law arises for consideration in the present appeals.


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