MANGE RAM MITTAL V. COMMISSIONER OF INCOME TAX

ITA/51/2007

AI Insights

The case involves two appeals related to the undisclosed income of Mange Ram Mittal, which was discovered during a search operation at his residence. The search, conducted on 28.06.1996, led to the discovery of undisclosed income, resulting in an additional assessment order under Section 132(1) of the Income Tax Act, 1961. The ITAT partly allowed Mittal's appeal against this order, leading to the current appeals by both the assessee and the Revenue. The main legal contention revolved around the scope of assessment under the special procedure for search cases, particularly whether the assessment should be restricted only to the evidence found during the search.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 763599 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 14-11-2024
• Assessment Year: misc
• Other Referred Cases: Mangalore Ganesh Beedi Works vs Comm Maysore
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: SANAY BANSAL; GAURI NEO RAMPAL
• Assessee Lawyers: AKSHAY BHAN; SHANTANU BANSAL; DEEPAK JINDAL; YUGANK GOYAL
• Keywords: Assessment Order; Block period; Income tax appellate tribunal; Search and seizure; Undisclosed income
• Section: 132(1); 158; 158 BB

Judgement Text

"ITA No. 51 of 2007 IN THE HIGH COURT OF PUNJAB AND HARYANA 1. ITA No. 51 of 2007 (O&M) Mange Ram Mittal Commissioner of Income Tax, Hisar 2. ITA No. 243 of 2008 (O&M) Commissioner of Income Mange Ram Mittal CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH Present: SANJEEV PRAKASH SHARMA, J. These two appeals are preferred against the order dated 18.08.2006 passed by the Special Bench Tax Appellate Tribunal, New Delhi. 2. 28.06.1996 at the residential premises of the assessee and undisclosed income was found. The Assistant Commissioner of Circle, Hisar, passed the additional assessment order under Section 132(1) of ITA No. 51 of 2007 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Pronouncement : 14.11.2024 ITA No. 51 of 2007 (O&M) Mange Ram Mittal Versus Commissioner of Income Tax, Hisar No. 243 of 2008 (O&M) Commissioner of Income-Tax, Hisar Versus Mange Ram Mittal CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH Mr. Akshay Bhan, Senior Advocate assisted by Mr. Shantanu Bansal, Dr. Deepak Jindal, Mr. Yugank Goyal, Advocates, for the appellant in ITA No. 51 of 2007 and for the respondent in ITA No. 243 of 2008. Mr. Sanay Bansal, Senior Advocate assisted by Mr. Gauri Neo Rampal, Senior Standing counsel for the Appellant in ITA No. 243 of 2008 and for the respondent In ITA No. 51 of 2007. *** SANJEEV PRAKASH SHARMA, J. These two appeals are preferred against the order dated 18.08.2006 passed by the Special Bench-B, comprising three Members of the Income Tax Appellate Tribunal, New Delhi. Brief facts of the case are that a search was conducted on 28.06.1996 at the residential premises of the assessee and undisclosed income was found. The Assistant Commissioner of Circle, Hisar, passed the additional assessment order under Section 132(1) of -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Reserved on : 12.09.2024 Date of Pronouncement : 14.11.2024 … Appellant Versus …Respondent … Appellant Versus …Respondent CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH Advocate assisted by Mr. Shantanu Bansal, Dr. Deepak Jindal, Mr. Yugank Goyal, Advocates, for the appellant in ITA No. 51 of 2007 and for the respondent Mr. Sanay Bansal, Senior Advocate assisted by Rampal, Senior Standing counsel for the Appellant in ITA No. 243 of 2008 and for the respondent These two appeals are preferred against the order dated 18.08.2006 comprising three Members of the Income Brief facts of the case are that a search was conducted on 28.06.1996 at the residential premises of the assessee and undisclosed income was found. The Assistant Commissioner of Income Tax, Hisar Circle, Hisar, passed the additional assessment order under Section 132(1) of These two appeals are preferred against the order dated 18.08.2006 comprising three Members of the Income Brief facts of the case are that a search was conducted on 28.06.1996 at the residential premises of the assessee and undisclosed Income Tax, Hisar Circle, Hisar, passed the additional assessment order under Section 132(1) of VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 the Income Tax Act, 1961 (for short, ‘the Act’) on 27.06.1997. The appeal filed by the assessee before the Income Tax Appellate Tribunal was referred to a three Judges Bench of the Tribunal. The learned Tribunal partly allowed the appeal on 18.08.2006 and many of the additions made by the assessing officer were not accepted. It is against that order that the Revenue and the Assessee are in appeals before this Co 3. Mittal is concerned, we find the points raised by learned counsel for the appellant therein are that the assessment was made only on the basis of material uncovered during search. The Parliam Chapter-XIV of search cases which is a self contained code. The amount to be subject to tax under the said chapter should have direct nexus with the material discovered during the course of such search operations alone. The assessment should be restricted only to the evidence found during the course of search. The words are relatable to such evidence, added with retrospective effect to Section 158 the legal position that was not relatable to the evidence found as a result of search ought not be included in the computation of undisclosed income. We find that the Tribunal has, therefore, examined the meaning and scope ofphraseology the Assessing Officer and relatable to such evidence 4. apposite to quote Section 158 which is as under: Computation of undisclosed income of the block period ITA No. 51 of 2007 the Income Tax Act, 1961 (for short, ‘the Act’) on 27.06.1997. The appeal filed by the assessee before the Income Tax Appellate Tribunal was referred e Judges Bench of the Tribunal. The learned Tribunal partly allowed the appeal on 18.08.2006 and many of the additions made by the assessing officer were not accepted. It is against that order that the Revenue and the Assessee are in appeals before this Court. So far as ITA No. 51 of 2007 preferred by Mr. Mange Ram Mittal is concerned, we find the points raised by learned counsel for the appellant therein are that the assessment was made only on the basis of material uncovered during search. The Parliam XIV-B of the Act laying down the special procedure for assessment of search cases which is a self contained code. The amount to be subject to tax under the said chapter should have direct nexus with the material d during the course of such search operations alone. The assessment should be restricted only to the evidence found during the course of search. The words are relatable to such evidence, added with retrospective effect to Section 158-BB of the Act from 01. the legal position that was not relatable to the evidence found as a result of search ought not be included in the computation of undisclosed income. We find that the Tribunal has, therefore, examined the meaning and scope hraseology “such other materials or information as are available with the Assessing Officer and relatable to such evidence For the purpose of considering the aforesaid aspect, it would be apposite to quote Section 158-BB (1) of the Act as it stood which is as under:- Computation of undisclosed income of the block period -2- the Income Tax Act, 1961 (for short, ‘the Act’) on 27.06.1997. The appeal filed by the assessee before the Income Tax Appellate Tribunal was referred e Judges Bench of the Tribunal. The learned Tribunal partly allowed the appeal on 18.08.2006 and many of the additions made by the assessing officer were not accepted. It is against that order that the Revenue and the So far as ITA No. 51 of 2007 preferred by Mr. Mange Ram Mittal is concerned, we find the points raised by learned counsel for the appellant therein are that the assessment was made only on the basis of material uncovered during search. The Parliament had enacted a separate B of the Act laying down the special procedure for assessment of search cases which is a self contained code. The amount to be subject to tax under the said chapter should have direct nexus with the material d during the course of such search operations alone. The assessment should be restricted only to the evidence found during the course of search. The words are relatable to such evidence, added with retrospective BB of the Act from 01.07.1995, and re-enforced with the legal position that was not relatable to the evidence found as a result of search ought not be included in the computation of undisclosed income. We find that the Tribunal has, therefore, examined the meaning and scope such other materials or information as are available with the Assessing Officer and relatable to such evidence”. For the purpose of considering the aforesaid aspect, it would be BB (1) of the Act as it stood on 01.07.1995, Computation of undisclosed income of the block period. the Income Tax Act, 1961 (for short, ‘the Act’) on 27.06.1997. The appeal filed by the assessee before the Income Tax Appellate Tribunal was referred e Judges Bench of the Tribunal. The learned Tribunal partly allowed the appeal on 18.08.2006 and many of the additions made by the assessing officer were not accepted. It is against that order that the Revenue and the So far as ITA No. 51 of 2007 preferred by Mr. Mange Ram Mittal is concerned, we find the points raised by learned counsel for the appellant therein are that the assessment was made only on the basis of ent had enacted a separate B of the Act laying down the special procedure for assessment of search cases which is a self contained code. The amount to be subject to tax under the said chapter should have direct nexus with the material d during the course of such search operations alone. The assessment should be restricted only to the evidence found during the course of search. The words are relatable to such evidence, added with retrospective enforced with the legal position that was not relatable to the evidence found as a result of search ought not be included in the computation of undisclosed income. We find that the Tribunal has, therefore, examined the meaning and scope such other materials or information as are available with For the purpose of considering the aforesaid aspect, it would be on 01.07.1995, VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 falling within the block period computed, \"[in ITA No. 51 of 2007 158BB. (1) The undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed, \"[in the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence), as reduced by the aggregate of the total income, or as the case may be, as increased by the aggregate of the losses of such previous years, determined, (a) where assessments under section 143 or section 144 or section 147 have been concluded date of commencement of the search or the date of requisition], on the basis of such assessments; (b) where returns of income have been filed under section 139 Thor in response to a notice issued under sub section (1) of section 142 or se assessments have not been made till the date of search or requisition, on the basis of the income disclosed in such returns; (c) where the due date for filing a return of income has expired, but no return of income has been filed, (A) on the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such entries result in computation of loss for any previous year falling in the block peri (B) on the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such income does not exceed the maximum amount not -3- (1) The undisclosed income of the block period shall be the aggregate of the total income of the previous years falling within the block period computed, \"[in accordance with the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence), as reduced by the aggregate of the total income, or as the case may be, as increased by the aggregate of the losses of such previous years, determined,- where assessments under section 143 or section 144 or section 147 have been concluded \"[prior to the date of commencement of the search or the date of requisition], on the basis of such assessments; where returns of income have been filed under section 139 Thor in response to a notice issued under sub- section (1) of section 142 or section 148] but assessments have not been made till the date of search or requisition, on the basis of the income disclosed in such returns; (c) where the due date for filing a return of income has expired, but no return of income has been filed,- the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such entries result in computation of loss for any previous year falling in the block period; or on the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such income does not exceed the maximum amount not (1) The undisclosed income of the block period shall be the aggregate of the total income of the previous years accordance with the provisions of this Act, on the basis of evidence found as a result of search or requisition of books of account or other documents and such other materials or information as are available with the Assessing Officer and relatable to such evidence), as reduced by the aggregate of the total income, or as the case may be, as increased by the aggregate of the losses where assessments under section 143 or section 144 \"[prior to the date of commencement of the search or the date of where returns of income have been filed under section - ction 148] but assessments have not been made till the date of search or requisition, on the basis of the income (c) where the due date for filing a return of income has the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such entries result in computation of loss for any previous year on the basis of entries as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition where such income does not exceed the maximum amount not VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 Explanation. For the purposes of determination of undisclosed ITA No. 51 of 2007 chargeable to tax for an in the block period; (ca) where the due date for filing a return of income has expired, but no return of income has been filed, as nil, in cases not falling un under clause (c);] (d) where the previous year has not ended or the dat filing the return of income under sub section 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course on or before the search or requisition relating to such previous years; (e) where any order of settlement has been made under sub-section (4) of section 245D, on the basis of such order; (f) where an assessment of undisclosed income had been made earlier under clause (c) of section 158BC, on the basis of such assessment. Explanation. For the purposes of determination of undisclosed income,- (a) the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total income or loss computed in accordance with the provisions of \"[this Act] without giving effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub section 32: [Provided that in computing deductions under Chapter VI-A for the purposes of the said aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub-section (2) of section 32;] -4- chargeable to tax for any previous year falling in the block period; (ca) where the due date for filing a return of income has expired, but no return of income has been filed, as nil, in cases not falling un under clause (c);] (d) where the previous year has not ended or the date of filing the return of income under sub-section (1) of section 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course on or before the date of the search or requisition relating to such previous years; (e) where any order of settlement has been made under section (4) of section 245D, on the basis of such (f) where an assessment of undisclosed income had been r clause (c) of section 158BC, on the basis of such assessment. Explanation. For the purposes of determination of undisclosed the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total loss computed in accordance with the provisions of \"[this Act] without giving effect to set off of brought forward losses under Chapter VI or unabsorbed depreciation under sub-section (2) of [Provided that in computing deductions under A for the purposes of the said aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed depreciation section (2) of section 32;] y previous year falling (ca) where the due date for filing a return of income has expired, but no return of income has been filed, as nil, e of section (1) of section 139 has not expired, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained date of the (e) where any order of settlement has been made under section (4) of section 245D, on the basis of such (f) where an assessment of undisclosed income had been r clause (c) of section 158BC, on Explanation. For the purposes of determination of undisclosed the total income or loss of each previous year shall, for the purpose of aggregation, be taken as the total loss computed in accordance with the provisions of \"[this Act] without giving effect to set off of brought forward losses under Chapter VI or section (2) of [Provided that in computing deductions under A for the purposes of the said aggregation, effect shall be given to set off of brought forward losses under Chapter VI or unabsorbed depreciation VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 5. interpreted by the Tribunal to include two types of material which may be considered by the assessing officer. First, the material found during search and relatable to such ev information as are available with the Assessing Officer. Thus, apart from the evidence which may be collected and noticed during search, if the assessing officer has any other information and such other relatable to such evidence, the same can also be looked into for the purpose. Therefore, an assessment under Section 158 made both on the basis of result of search as well as post search enquiry other proceedings which are in the nature of consequences of the evidence found as a result of search. The Tribunal has, therefore, succinctly and vividly observed as under: jewellery or other valuable ITA No. 51 of 2007 (b) of a firm, returned income and total income assessed for each of the previous years falling within the block period shall be the income determined before allowing deduction of salary, interest, commission, bonus or remuneration by whatever name called \"[to any partner not being a working partner]: Provided that undisclo determined shall not be chargeable to tax in the hands of the partners, whether on allocation or on account of enhancement;] (c) assessment under section 143 includes determination of income under sub-section (1) or sub section 143.” We find that the words which have been added are rightly interpreted by the Tribunal to include two types of material which may be considered by the assessing officer. First, the material found during search and relatable to such evidence and the second part is such other materials or information as are available with the Assessing Officer. Thus, apart from the evidence which may be collected and noticed during search, if the assessing officer has any other information and such other relatable to such evidence, the same can also be looked into for the purpose. Therefore, an assessment under Section 158- made both on the basis of result of search as well as post search enquiry other proceedings which are in the nature of consequences of the evidence found as a result of search. The Tribunal has, therefore, succinctly and vividly observed as under:- “Thus, at every point where any money, bullion, jewellery or other valuable articles or thing is found during the course of search the question is required to be answered, does it constitute what has not been or would not have been -5- of a firm, returned income and total income assessed the previous years falling within the block period shall be the income determined before allowing deduction of salary, interest, commission, bonus or remuneration by whatever name called \"[to any partner not being a working partner]: Provided that undisclosed income of the firm so determined shall not be chargeable to tax in the hands of the partners, whether on allocation or on account of (c) assessment under section 143 includes determination section (1) or sub-section (1B) of We find that the words which have been added are rightly interpreted by the Tribunal to include two types of material which may be considered by the assessing officer. First, the material found during search idence and the second part is such other materials or information as are available with the Assessing Officer. Thus, apart from the evidence which may be collected and noticed during search, if the assessing officer has any other information and such other material with him, which is relatable to such evidence, the same can also be looked into for the purpose. -BC of the Act is required to be made both on the basis of result of search as well as post search enquiry and other proceedings which are in the nature of consequences of the evidence found as a result of search. The Tribunal has, therefore, succinctly and “Thus, at every point where any money, bullion, articles or thing is found during the course of search the question is required to be answered, does it constitute what has not been or would not have been of a firm, returned income and total income assessed the previous years falling within the block period shall be the income determined before allowing deduction of salary, interest, commission, bonus or remuneration by whatever name called \"[to any sed income of the firm so determined shall not be chargeable to tax in the hands of the partners, whether on allocation or on account of (c) assessment under section 143 includes determination B) of We find that the words which have been added are rightly interpreted by the Tribunal to include two types of material which may be considered by the assessing officer. First, the material found during search idence and the second part is such other materials or information as are available with the Assessing Officer. Thus, apart from the evidence which may be collected and noticed during search, if the assessing material with him, which is relatable to such evidence, the same can also be looked into for the purpose. BC of the Act is required to be and other proceedings which are in the nature of consequences of the evidence found as a result of search. The Tribunal has, therefore, succinctly and “Thus, at every point where any money, bullion, articles or thing is found during the course of search the question is required to be answered, does it constitute what has not been or would not have been VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 jewellery or other valuable article or thing or any income is Answer to that question would depend on the facts an 6. for the assessee. 7. affidavit of the employees have not been considered. It is argued that assessee was not provided sufficient opportunity and fair hearing has not been provided to him. 8. were found at the residence of the assessee during the search and written documents cont mentioned as partners in the partnership Company, M/s Shanker Lal & Company and original challans of license fee running into crores paid to Excise Department were also foun number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, ITA No. 51 of 2007 disclosed for the purposes of the Income much problem in arriving at what has relation to the returns of income that have already been filed as on the date of the search in question. If any money, bullion, jewellery or other valuable article or thing or any income is required to be disclosed for the purposes o any return of income but not disclosed, they would constitute basis for \"undisclosed income\". More difficulty arises in cases where the returns of income have not been filed but the due date for filing the return of income has not expir return of income itself has not fallen due. In such cases it is not a question is not of what has not been disclosed but of what would not have been disclosed for the purposes of the Act. Answer to that question would depend on the facts an circumstances of each case.” We, therefore, reject the submissions made by learned counsel for the assessee. The next submission of learned counsel for the assessee that the affidavit of the employees have not been considered. It is argued that assessee was not provided sufficient opportunity and fair hearing has not been provided to him. We find that plethora of other material and partnership were found at the residence of the assessee during the search and written documents containing names and father’s name of persons who are mentioned as partners in the partnership-deed relating to M/s Mittal and Company, M/s Shanker Lal & Company and original challans of license fee running into crores paid to Excise Department were also foun number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, -6- disclosed for the purposes of the Income- tax Act. There is not much problem in arriving at what has not been disclosed in relation to the returns of income that have already been filed as on the date of the search in question. If any money, bullion, jewellery or other valuable article or thing or any income is required to be disclosed for the purposes of Income-tax Act in any return of income but not disclosed, they would constitute basis for \"undisclosed income\". More difficulty arises in cases where the returns of income have not been filed but the due date for filing the return of income has not expired or where the return of income itself has not fallen due. In such cases it is not a question is not of what has not been disclosed but of what would not have been disclosed for the purposes of the Act. Answer to that question would depend on the facts and We, therefore, reject the submissions made by learned counsel The next submission of learned counsel for the assessee that the affidavit of the employees have not been considered. It is argued that the assessee was not provided sufficient opportunity and fair hearing has not of other material and partnership-deeds were found at the residence of the assessee during the search and written aining names and father’s name of persons who are deed relating to M/s Mittal and Company, M/s Shanker Lal & Company and original challans of license fee running into crores paid to Excise Department were also found. Large number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, tax Act. There is not not been disclosed in relation to the returns of income that have already been filed as on the date of the search in question. If any money, bullion, jewellery or other valuable article or thing or any income is tax Act in any return of income but not disclosed, they would constitute basis for \"undisclosed income\". More difficulty arises in cases where the returns of income have not been filed but the due ed or where the return of income itself has not fallen due. In such cases it is not a question is not of what has not been disclosed but of what would not have been disclosed for the purposes of the Act. d We, therefore, reject the submissions made by learned counsel The next submission of learned counsel for the assessee that the the assessee was not provided sufficient opportunity and fair hearing has not deeds were found at the residence of the assessee during the search and written aining names and father’s name of persons who are deed relating to M/s Mittal and Company, M/s Shanker Lal & Company and original challans of license fee d. Large number of documents relating to correspondence with Excise Department, police cases, court cases relating to the firms carrying out liquor business, VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 which were not in the name of the assessee, have also been found from his premises. 9. operated by various companies were also recovered from his premises. There were 7+9+7 truck loads recovered from three different places. Stock position of various liquor vends was also found. During the cour search, statements of number of persons were also recorded, who stated that they were salesmen working in those vends. The assessee was their employer and real owner of the vends. Merely because the license was issued by the Excise Department for va which the learned assessing officer has found to be undisclosed income of the assessee cannot absolve the concerned assessee. We agree with the Tribunal that the assessing officer is not flattered by the technical rule of evidence and if he reaches to the conclusion that the vends are all being owned and managed by the concerned person singularly through employees, merely because the licenses are not in the name of the concerned assessee, it would not make any difference to r undisclosed income. 10. persons, whose statements were relied upon, was afforded to the assessee and after the cross earlier statements was emerged and in some cases the assessee did not even come forward to cross also a document of rent agreement for premises taken on record in the name of one M/s Chander Bh the assessee as a contractor. Thus, the Tribunal has found that there was undisclosed income of the assessee which he was earning through ghost and ITA No. 51 of 2007 which were not in the name of the assessee, have also been found from his Copies of number of maps of godowns and vends, which were operated by various companies were also recovered from his premises. There were 7+9+7 truck loads recovered from three different places. Stock position of various liquor vends was also found. During the cour search, statements of number of persons were also recorded, who stated that they were salesmen working in those vends. The assessee was their employer and real owner of the vends. Merely because the license was issued by the Excise Department for various liquor vends, income from which the learned assessing officer has found to be undisclosed income of the assessee cannot absolve the concerned assessee. We agree with the Tribunal that the assessing officer is not flattered by the technical rule of idence and if he reaches to the conclusion that the vends are all being owned and managed by the concerned person singularly through employees, merely because the licenses are not in the name of the concerned assessee, it would not make any difference to reach to the conclusion that there is undisclosed income. We also find that there is cross persons, whose statements were relied upon, was afforded to the assessee and after the cross-examination was conducted when nothing co earlier statements was emerged and in some cases the assessee did not even come forward to cross-examine, the inference could be drawn. There was also a document of rent agreement for premises taken on record in the name of one M/s Chander Bhan Om Parkarsh and Company, which was signed by the assessee as a contractor. Thus, the Tribunal has found that there was undisclosed income of the assessee which he was earning through ghost and -7- which were not in the name of the assessee, have also been found from his number of maps of godowns and vends, which were operated by various companies were also recovered from his premises. There were 7+9+7 truck loads recovered from three different places. Stock position of various liquor vends was also found. During the courses of search, statements of number of persons were also recorded, who stated that they were salesmen working in those vends. The assessee was their employer and real owner of the vends. Merely because the license was rious liquor vends, income from which the learned assessing officer has found to be undisclosed income of the assessee cannot absolve the concerned assessee. We agree with the Tribunal that the assessing officer is not flattered by the technical rule of idence and if he reaches to the conclusion that the vends are all being owned and managed by the concerned person singularly through employees, merely because the licenses are not in the name of the concerned assessee, it each to the conclusion that there is We also find that there is cross-examination of almost all persons, whose statements were relied upon, was afforded to the assessee examination was conducted when nothing contrary to the earlier statements was emerged and in some cases the assessee did not even examine, the inference could be drawn. There was also a document of rent agreement for premises taken on record in the name an Om Parkarsh and Company, which was signed by the assessee as a contractor. Thus, the Tribunal has found that there was undisclosed income of the assessee which he was earning through ghost and which were not in the name of the assessee, have also been found from his number of maps of godowns and vends, which were operated by various companies were also recovered from his premises. There were 7+9+7 truck loads recovered from three different places. Stock ses of search, statements of number of persons were also recorded, who stated that they were salesmen working in those vends. The assessee was their employer and real owner of the vends. Merely because the license was rious liquor vends, income from which the learned assessing officer has found to be undisclosed income of the assessee cannot absolve the concerned assessee. We agree with the Tribunal that the assessing officer is not flattered by the technical rule of idence and if he reaches to the conclusion that the vends are all being owned and managed by the concerned person singularly through employees, merely because the licenses are not in the name of the concerned assessee, it each to the conclusion that there is examination of almost all persons, whose statements were relied upon, was afforded to the assessee ntrary to the earlier statements was emerged and in some cases the assessee did not even examine, the inference could be drawn. There was also a document of rent agreement for premises taken on record in the name an Om Parkarsh and Company, which was signed by the assessee as a contractor. Thus, the Tribunal has found that there was undisclosed income of the assessee which he was earning through ghost and VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment ITA No. 51 of 2007 benami companies, which were running on the properties taken him. The assessment order was found to have been correctly re the three Judges Bench of the Tribunal. 11. appellant- Mange Ram Mittal does not press the issue relating to con of special bench of three Judges by the President of ITAT. 12. is dismissed. ITA No. 243 of 2008 13. Income-Tax, Hisa 14. fail as we have already noticed that special bench of three Judges of the ITAT has examined the case on facts and there is no substantial law which emanates from the order passed by the Tribunal. Pure findings of fact are immune from challenge in appeals under Section 260A of the Income Tax Act as has been held by Hon’ble the Supreme Court in Mangalore Ganesh Beedi Works vs Comm Maysore (2015) 378 ITR 640. Therefore, the appeal filed by the Revenue is also dismissed. 15. 16. 14.11.2024 vs Whether speaking/reasoned Whether reportable ITA No. 51 of 2007 companies, which were running on the properties taken him. The assessment order was found to have been correctly re the three Judges Bench of the Tribunal. During the course of arguments, learned counsel for the Mange Ram Mittal does not press the issue relating to con of special bench of three Judges by the President of ITAT. For the reasons recorded above, the appeal filed by the assessee is dismissed. ITA No. 243 of 2008 ITA No. 243 of 2008 has been filed by the Commissioner of Tax, Hisar, against the order of the ITAT dated 18.08.2006. We find that the appeal filed by the Revenue also deserves to fail as we have already noticed that special bench of three Judges of the ITAT has examined the case on facts and there is no substantial law which emanates from the order passed by the Tribunal. Pure findings of fact are immune from challenge in appeals under Section 260A of the Income Tax Act as has been held by Hon’ble the Supreme Court in Mangalore Ganesh Beedi Works vs Comm (2015) 378 ITR 640. Therefore, the appeal filed by the Revenue is also dismissed. Accordingly, both appeals are dismissed. No costs. (SANJEEV PRAKASH SHARMA) Whether speaking/reasoned Yes/No Whether reportable Yes/No -8- companies, which were running on the properties taken on rent by him. The assessment order was found to have been correctly re-assessed by During the course of arguments, learned counsel for the Mange Ram Mittal does not press the issue relating to constitution of special bench of three Judges by the President of ITAT. For the reasons recorded above, the appeal filed by the assessee ITA No. 243 of 2008 has been filed by the Commissioner of r, against the order of the ITAT dated 18.08.2006. We find that the appeal filed by the Revenue also deserves to fail as we have already noticed that special bench of three Judges of the ITAT has examined the case on facts and there is no substantial question of law which emanates from the order passed by the Tribunal. Pure findings of fact are immune from challenge in appeals under Section 260A of the Income Tax Act as has been held by Hon’ble the Supreme Court in Mangalore Ganesh Beedi Works vs Commissioner of Income-Tax, (2015) 378 ITR 640. Therefore, the appeal filed by the Revenue is Accordingly, both appeals are dismissed. (SANJEEV PRAKASH SHARMA) JUDGE (SANJAY VASHISTH) JUDGE Yes/No Yes/No on rent by assessed by During the course of arguments, learned counsel for the stitution For the reasons recorded above, the appeal filed by the assessee ITA No. 243 of 2008 has been filed by the Commissioner of We find that the appeal filed by the Revenue also deserves to fail as we have already noticed that special bench of three Judges of the question of law which emanates from the order passed by the Tribunal. Pure findings of fact are immune from challenge in appeals under Section 260A of the Income Tax Act as has been held by Hon’ble the Supreme Court in Tax, (2015) 378 ITR 640. Therefore, the appeal filed by the Revenue is VARINDER SINGH 2024.11.14 14:36 I attest to the accuracy and authencity of this order/judgment "