Commissioner of Income Tax-15 vs Plastika Enterprises

Heard the learned Counsel for the parties. Perused the affidavit dated 3-12-2008 filed by the Deputy Commissioner of Income Tax. For the reasons stated in paragraph No. 7 of the said affidavit, we recall our order dated 19-11-2008 regarding the imposition of costs on the appellant, quantified at Rs. 5,000 to that limited extent only. It appears from the said affidavit that the respondent has already been served in the above matter.

By way of the present appeal, the appellant is seeking to raise the following substantial questions of law:

Whether, on the facts and in the circumstances of the case the Hon''ble Tribunal is justified in law in holding that the assessment completed by the Assessing Officer is barred by limitation ?

Whether, on the facts and in the circumstances of the case the Hon''ble Tribunal is justified in law in holding that the last Panchnama drawn on 20-9-2000 cannot be taken into account for the purpose of calculation of time limit u/s 158BE for completion of assessment ?

Whether, on the facts and in the circumstances of the case, the Hon''ble Tribunal is justified in adjudicating the issue of validity of Panchnama drawn on 31-8-2000 and 20-9-2000 even though the Panchnama is prepared during the course of search action u/s 132 and therefore is not part of assessment proceedings ?

Whether, on the facts and in the circumstances of the case the Hon''ble Tribunal is justified in law in holding that there was no suppression of sales by the assessee in assessment years 1997-98 and 1998-99 even though the assessee had admitted suppression of sale in these 2 years before the sales tax authorities ?

The learned Counsel for the respondent produced before us the xerox copy of the Panchnama dated 5-8-2000, which categorically mentions that the stock valued at Rs. 1,61,55,035 was seized on that day. It appears that the department is seeking to rely on the subsequent Panchnama dated 20-9-2000 which only mentions that the Inventory of Stock valued at Rs. 1,61,55,035 as per the inventory made on 4/5-8-2000. In fact, on 20-9-2000 nothing has been done by the revenue. The revenue has merely inspected the premises and found the seal to be intact. Paragraph No. 2 of the said panchnama dated 20-9-2000 mentions that:

As today''s search was in continuance of the proceedings on 31-8-2000, we along with the aforesaid authorised officers before the commencement of proceeding today, inspected the seals which had been placed on that date and found them to be intact/tampered with as narrated in the enclosures.

Annexure-2 of the said Panchnama dated 20-9-2008 mentions that:

Stock valued at Rs. 1,61,55,035 (Rupees one crore sixty one lakhs, fifty five thousand and thirty five) as per inventory made on 4/5-8-2000.

It is apparent that the Panchnama dated 20-9-2000 and the visit of the revenue to the premises appears to have been made only to get over the limitation issue. Under these circumstances, we are not at all inclined to entertain question Nos. (A), (B) and (C), and in view thereof, the Question (D) does not survive. Hence, the appeal stands dismissed.