M/s Venkatesh Paper Agencies, Hyderabad v. ITO, Hyderabad

ITA 731/HYD/2009 | misc
Pronouncement Date: 29-01-2010 | Result: Allowed

Appeal Details

RSA Number 73122514 RSA 2009
Assessee PAN AFPPB1332L
Bench Hyderabad
Appeal Number ITA 731/HYD/2009
Duration Of Justice 7 month(s) 27 day(s)
Appellant M/s Venkatesh Paper Agencies, Hyderabad
Respondent ITO, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-01-2010
Date Of Final Hearing 06-01-2010
Next Hearing Date 06-01-2010
Assessment Year misc
Appeal Filed On 02-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENTAND SHRI AKBER BASHA ACCOUNTANT MEMBER ITA NO.730/HYD/2009 : ASSTT. YEAR 1986-87 ITA NO.731/HYD/2009 : ASST T. YEAR 1987-88 M/S. VENKATESH PAPER AGENCIES HYDERABAD (PAN NO. AFPPB 1332 L ) VS INCOME TAX OFFICER WARD 5[2] HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. K.L.RATHI RESPONDENT BY : SMT. NIVEDITA BISWAS O R D E R PER BENCH: THESE TWO APPEALS PREFERRED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED CIT(A)-V HYDE RABAD DATED 31.03.2009 FOR THE ASSESSMENT YEARS 1986-87 AND 1987-88. SINCE COMMON ISSUES ARE INVOLVED BOTH THESE APPEALS ARE BEING DISPOSED OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE I S ENGAGED IN THE BUSINESS AS A DEALER IN PAPER. FOR THE ASSESSMENT YEAR 1986-87 IT FILED RETURN OF INCOME DECLARING ITS TOTAL INCOME AT R S.93 967. THE SAID RETURN WAS INITIALLY PROCESSED UNDER S.143(1) OF THE ACT . SUBSEQUENTLY THE BOOKS OF ACCOUNT OF THE ASSESSEE FIRM WERE SEIZED BY T HE DISTRICT ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 2 VIGILANCE AND ENFORCEMENT OFFICER HYDERABAD IN THE COU RSE OF THE SEARCH IN THE CASE OF SRI BAJRANGLAL AGARWAL. IN THIS V IEW OF THE MATER THE COMMISSIONER OF INCOME TAX AP-I HYDERABAD ISSUED A WARRANT ON THE DISTRICT VIGILANCE AND ENFORCEMENT OFFICER FOR TA KING OVER THE BOOKS OF THE ASSESSEE FIRM AND ACCORDINGLY THE SALES BOOK PURC HASES BOOK CASH BOOK AND LEDGER RELEVANT TO ASSESSMENT YEARS 1986-87 AND 1987- 88 WERE TAKEN OVER BY THE INCOME-TAX DEPARTMENT. TA KING NOTE OF THE DISCREPANCIES IN THE BOOKS OF ACCOUNT THE ASSESSING OFFICER RE OPENED THE ASSESSMENT AND AS AGAINST THE LOSS RETURNED BY THE ASSESSE E IN RESPONSE TO THE NOTICE UNDER S.148 OF THE ACT THE ASSESSIN G OFFICER COMPLETED THE REOPENED ASSESSMENT TREATING THE UNRECONCILE D PURCHASES OF RS.24 74 176 AS INFLATION IN PURCHASES AND ALS O DISALLOWING THE ASSESSEE'S CLAIM IN RESPECT OF LIABILITY ON ACCOUNT OF FO RFEITURE OF SALES TAX UNDER S.43B OF THE ACT VIDE ORDER OF ASSESSMENT DATED 30.3.1990. ON APPEAL THE CIT(A) VIDE HIS ORDER DA TED 27.3.1991 SET ASIDE THE ASSESSMENT THUS MADE AND RESTORED THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH CERTAIN DIRECTIONS FOR REFRAMIN G THE SAME DE NOVO. IN PURSUANCE OF THE ORDER OF THE CIT(A) THE ASSESSING OFFICER AFTER EXAMINING THE DETAILS COMPLETED THE ASSESSMENT PR OCEEDINGS BY REJECTING THE REVISED RETURN OF INCOME FILED BY THE A SSESSEE ON 23.3.1993 ON THE BASIS OF THE ORIGINAL RETURN OF INCOM E. ON APPEAL THE SAID ASSESSMENT WAS ALSO SET ASIDE BY THE CIT(A) VIDE HIS OR DER DATED 4.11.1993 WITH THE OBSERVATION THAT THE ASSESSING OFFICE R HAS NOT FOLLOWED THE DIRECTIONS GIVEN BY THE CIT(A) IN HIS ORD ER DATED 27.3.1991. THEREUPON IN PURSUANCE OF THE SAID ORDER OF THE CIT(A ) DATED 4.11.1993 REASSESSMENT PROCEEDINGS WERE AGAIN INITIATE D AND FRESH ASSESSMENT WAS ULTIMATELY COMPLETED ON A TOTAL INCOME OF R S. ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 3 28 25 367 VIDE ORDER DATED 27.3.1996 COMPUTING THE INCOME FOR THE ASSESSMENT YEAR 1986-87 IN THE FOLLOWING MANNER- 'INCOME AS PER ORIGINAL RETURN RS. 93 967 ADDITIONS: 1. TOWARDS SUPPRESSED GROSS PROFIT RS. 9 20 924 2. OTHER SOURCES - UNEXPLAINED INVESTMENT IN PURCHASES MADE TO AP PAPER MILLS LTD. RS.18 10 476 TAXABLE INCOME RS.28 25 367 OR RS.28 25 370 3. FACTUAL ASPECTS OF THE MATTER ARE ALMOST SIMILAR F OR THE ASSESSMENT YEAR 1987-88 ALSO EXCEPT FOR THE FACT THAT FOR THIS YEAR THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME WITHIN THE D UE DATE AS PER S.139(1) OF THE ACT AND FROM VERIFICATION OF THE SEIZ ED BOOKS OF ACCOUNT OF THE ASSESSEE FOR THE PREVIOUS YEAR RELEVANT TO ASSESSMENT YEAR 1987- 88 WHICH WERE EARLIER TAKEN OVER FROM THE DISTRICT VI GILANCE AND ENFORCEMENT OFFICER THE ASSESSING OFFICER FOUND THAT THE ASSESSEE WAS HAVING SUBSTANTIAL AMOUNT OF TAXABLE INCOME FOR THE A SSESSMENT YEAR 1987-88. HOWEVER SINCE THE ASSESSEE HAS NOT FILED ANY RET URN NOTICE UNDER S.148 OF THE ACT WAS ISSUED REQUIRING THE ASSESSEE TO FILE RETURN. IN RESPONSE ASSESSEE FILED RETURN ON 28.1.1993 SHOWING LO SS OF RS.1 97 550. HOWEVER THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S. 144 OF THE ACT DETERMINING THE TOTAL INCOME OF TH E ASSESSEE AT RS.27 24 380. ON APPEAL THE CIT(A) VIDE HIS ORDER DATED 8.9.1993 HAS SET ASIDE THE SAID ASSESSMENT AND DIRECTED THE ASSESSING OFFICER TO REDO ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 4 THE SAME AFTER GIVING REASONABLE OPPORTUNITY TO THE A SSESSEE. IN PURSUANCE OF THE SAID ORDER OF THE CIT(A) ASSESSING OFFI CER HAS TAKEN UP THE ASSESSMENT PROCEEDINGS AND AFTER DISCUSSING THE FACTS OF THE CASE AT LENGTH COMPLETED THE ASSESSMENT U/S. 143(3) READ WITH S. 251AND READ WITH S.147 OF THE ACT ON 27.3.1996 DETERMINING THE T OTAL INCOME AT RS.27 24 380 IN THE FOLLOWING MANNER- 1)BUSINESS INCOME ESTIMATED RS. 5 13 388 2)UNEXPLAINED INVESTMENT RS.20 02 799 3)OTHER SOURCES RS. 2 08 186 TAXABLE INCOME RS.27 24 383 OR RS.27 24 380 4. ON APPEAL AGAINST THE SAID ASSESSMENTS THE CIT(A) VI DE HIS COMMON ORDER DATED 21.12.1998 FOR ASSESSMENT YEARS 1986-8 7 AND 1987-88 CONFIRMED THE ASSESSMENTS MADE BY THE ASSESSING OFF ICER FOR BOTH THE YEARS. WHEN THE ASSESSEE PREFERRED APPEALS AGAI NST THE SAID ORDER OF THE CIT(A) THE TRIBUNAL SET ASIDE THE MATTE R TO THE FILE OF THE CIT(A) FOR A DECISION DE NOVO AND ALSO DIRECTING THE C IT(A) TO DECIDE ALL THE ISSUES AFRESH AFTER GIVING OPPORTUNITY OF BEING HEA RD TO THE ASSESSEE. IN PURSUANCE OF THIS ORDER OF THE TRIBUNAL TH E CIT(A) PASSED THE IMPUGNED ORDER DATED 31.3.2009 REJECTING THE GR OUNDS OF THE ASSESSEE AND DISMISSING THE APPEALS FOR BOTH THE YEARS. 5. EVEN IN THE PRESENT APPEALS THE ELABORATE GROU NDS OF THE ASSESSEE WHICH READ MORE OR LESS ON SIMILAR LINES ALLEGE V IOLATION OF THE PRINCIPLES OF NATURAL JUSTICE NON-CONSIDERATION OF BASIC A ND FUNDAMENTAL ISSUES BY THE CIT(A) IN ACCORDANCE WITH THE DIRECTIONS OF T HE TRIBUNAL ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 5 AMOUNTING TO CONTEMPT OF COURT. ON MERITS BESIDES CONT ESTING IN GENERAL IN GROUND NO.1 THE DETERMINATION BY THE ASSE SSING OFFICER TOTAL INCOME AT RS.28 25 370 AS AGAINST RETURNED LOSS OF RS.2 2 0 740 FOR ASSESSMENT YEAR 1986-87 AND AT RS.27 24 380 AS AGAINST R ETURNED LOSS OF RS.1 97 550 FOR ASSESSMENT YEAR 1987-88 THE ONLY OTH ER GROUND ON THE MERITS RAISED BY THE ASSESSEE IN THESE APPEALS READ AS F OLLOWS- '5)THAT THE MOST IMPORTANT FACT IS THAT PARTIES INV OLVED ARE A GOVERNMENT STATIONARY DEPARTMENT AND ANOTHER IN AP PAPER MILLS LTD. AND SO FAR THE ASSESSEE IS CONCERNED BEING ON LY INTERMEDIARY IN THE MATTER OF SUPPLY OF PAPER TO ST ATIONARY DEPARTMENT AS PER TERMS OF TENDER WAS PAID REMUNERATION/DISCOUNT BY AP PAPER MILL LIMITED ON O FF SET PAPER @ 630/- PER TONNE AND @ 750/- PER TONNE ON MAPLITHO AS IS EVIDENT FROM THE BILLS OF AP PAPER MILLS LTD IN TH E CIRCUMSTANCES QUESTION OF ESCAPING OF ANY INCOME IN THE HANDS OF THE ASSESSEE DOES NOT AT ALL ARISE AS ALL PAYM ENTS AND RECEIPTS WHETHER BY GOVERNMENT STATIONARY DEPARTMENT OR BY AP PAPER MIL LS LTD. WITHOUT EXEMPTION ARE BY ACCOUNT PAYEE CHEQUES. HE NCE IT IS BEYOND ONE'S IMAGINATION THAT ASSESSEE CAN INDULGE IN EVASION OF ANY TAX LIABILITY.' 6. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CIT(A) RESTORED THE ISSUE TWICE TO THE FILE OF THE ASSESSIN G OFFICER WHICH IS NOT ACCORDING TO THE LAW AND AS SUCH RESTORATION OF T HE MATTER FOR THE SECOND TIME IS TOTALLY ILLEGAL. THE LOWER AUTHORITIE S ARE NOT CORRECT IN STATING THAT NO BOOKS WERE IMPOUNDED BY THE DEPARTMEN T. IN THIS BEHALF HE INVITED OUR ATTENTION TO REVISED ASSESSMENT O RDER DATED 29.8.1988 PASSED BY THE COMMERCIAL TAX OFFICER FOR THE ASSESSMENT YEAR 1985-86 WHEREIN ON PAGE-4 THEREOF IT HAS BEEN SPECIFICALLY NOTED THAT THE BOOKS OF ACCOUNT ARE AVAILABLE WITH THE INCOME -TAX DEPARTMENT. THE BOOKS WERE WRONGLY SEIZED BY THE INCO ME-TAX DEPARTMENT UNDER S.132/132A OF THE ACT AND STILL TH EY CONTINUE TO BE KEPT BY THE DEPARTMENT IN ITS CUSTODY AND NOT RETURNED TO THE ASSESSEE. ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 6 AS SUCH IT WAS PLEADED THAT THE ASSESSEE IS IN EXTREMELY DIFFICULT POSITION TO FILE THE REQUIRED INFORMATION CALLED FOR BY THE DEPARTMENT. EVEN THOUGH THE TRIBUNAL DIRECTED THE CIT(A) TO DECID E ALL THE ISSUES RAISED BY THE ASSESSEE IN PARTICULAR THE FUNDAMENTAL ISS UE RELATING TO BOOKS OF ACCOUNT SEIZED AND HELD ILLEGALLY BY THE DEPAR TMENT THE CIT(A) HAS NOT DECIDED THE SAME EVEN AFTER LAPSE OF A PERIOD OF TWENTY YEARS SINCE THE BOOKS WERE SEIZED. ON MERITS HE SUBMITTED THAT BOOKS OF ACCOUNT ARE NTO AT ALL REQUIRED TO ARRIVE AT THE TAXA BLE INCOME OF THE ASSESSEE SINCE THE ASSESSEE WORKED ONLY AS AN INTERMEDIARY IN THE MATTER OF SUPPLY OF PAPER TO STATIONERY DEPARTMENT BY A.P. PAPER MILLS AS PER THE TERMS AND CONDITIONS OF TENDERS. THE ASSESSEE WAS PAID FIXED REMUNERATION OR DISCOUNT PER TONNE BY THE A.P.P APER MILLS LTD. IN SUPPORT OF THIS CONTENTION HE PLACED RELIANCE ON A COPY OF THE INVOICE ISSUED BY A.P.PAPER MILLS TO THE ASSESSEE FOR SUPPLY OF PA PER TO THE DY. DIRECTOR OF STATIONERY WING HYDERABAD PLACED AT PAGE 63 OF THE PAPER- BOOK WHEREIN RS.680 PER TONNE WAS GIVEN TO THE ASSESSEE AS TRADE DISCOUNT ON OFFSET PAPER. HE ALSO PLACED RELIANCE ON COPY OF THE TENDER TERMS AND CONDITIONS DATED 16.5.1985 WHICH IS PLACED AT PAGE 8 OF THE PAPER BOOK-1 AND INVITED OUR SPECIFIC ATTENTION TO SL .NO.3 OF THE TERMS AND CONDITIONS WHICH READ AS FOLLOWS- 'THE RATE SHOULD BE QUOTED EXCLUSIVE OF ALL TAXES INDICATING EXACTLY THE PERCENTAGE OF VARIOUS TAXES TRANSPORT ETC. REBATE ETC. WHICH WILL BE CHARGED AGAINST EACH ITEM.' IT IS ALSO FURTHER SUBMITTED THAT THE ASSESSEE HAS NOT MADE ANY OTHER TRANSACTION EXCEPT RECEIVING COMMISSION IN ITS STATUS AS AN INTERMEDIARY. THE ENTIRE COMMISSION RECEIVED BY WAY O F ACCOUNT PAYEE CHEQUES ARE DULY ACCOUNTED FOR AND HENCE THERE IS NO SCOPE FOR ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 7 ESCAPEMENT OF ANY INCOME IN THE HANDS OF THE ASSESSEE. HENCE THE ASSESSEE'S RETURNED INCOME/LOSS SHOULD HAVE BEEN ACCEPTED WIT HOUT ANY ADDITION FOR BOTH THE YEARS. 7. ON THE OTHER HAND THE LEARNED DEPARTMENTAL REP RESENTATIVE SUBMITTED THAT THE ASSESSEE HAS NOT GIVEN FULL PARTICULARS OF PURCHASES AND ALSO HAS NOT RECONCILED ENTIRE PURCHASES MADE FROM A. P. PAPER MILLS LTD. HE ALSO SUBMITTED THAT ONLY BOOKS RELATING TO AS SESSMENT YEAR 1986-87 WERE SEIZED BY THE DEPARTMENT AND NOT FOR TH E ASSESSMENT YEAR 1987-88. IN SUPPORT OF HIS CONTENTIONS OUR ATTEN TION IS INVITED THE LETTER DATED 2.3.1993 OF THE ACIT CIRCLE-1 HYDERABAD ADDRESSED TO DISTRICT VIGILANCE AND ENFORCEMENT OFFICER COPY OF WHI CH IS PLACED AGAINST SL.NO.9 IN THE DEPARTMENT'S PAPER-BOOK. IT IS ALSO SUBMITTED THAT COPIES OF THE BOOKS OF ACCOUNT WERE TAKEN BACK BY TH E ASSESSEE AS PER THE ENTRY ON NOTING SHEET FORMING PART OF THE D EPARTMENT'S RECORDS. HENCE ASSESSEE CANNOT TAKE SHELTER ON THE PLEA OF THE RECOR DS HAVING BEEN SEIZED BY THE DEPARTMENT AND AS SUCH NOT BEING AV AILABLE TO THE ASSESSEE. AS PER FORM 3CD FILED BY THE ASSESSEE COPY OF W HICH IS ALSO FILED IN THE DEPARTMENT'S PAPER-BOOK IT IS SUBMITTED THE AUDITORS OF THE ASSESSEE VERIFIED THE CASH BOOK LEDGER AND OTHER RECORDS WHICH COULD NOT HAVE BEEN POSSIBLE IF THE BOOKS OF ACCOUNT AND OTH ER RECORDS WERE INDEED IN THE CUSTODY OF THE DEPARTMENT. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS EVIDENT FROM IMPU GNED ORDERS OF THE LOWER AUTHORITIES AND OTHER MATERIAL AVAILABLE ON RE CORD THAT THE ASSESSEE HAS ONLY AS AN INTERMEDIARY BETWEEN THE STATIONER Y DEPARTMENT AND A.P.PAPER MILLS LTD. IN THE MATTER OF PURCHASE OF ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 8 STATIONERY BY THE FORMER FROM THE LATTER. AS PER COPY OF THE TENDER DOCUMENTS AND A COPY OF INVOICE FILED IN THE PAPER-BOO K IT APPEARS THAT ALL THAT THE ASSESSEE RECEIVED IN ITS ROLE AS AN INTERMED IARY IS ONLY A FIXED COMMISSION PER TONNE OF PAPER PURCHASED BY THE STA TIONERY DEPARTMENT FROM THE A.P. PAPER MILLS LTD. SUCH COMMISSIO N ALSO APPEARS TO HAVE BEEN PAID ONLY BY WAY OF ACCOUNT PAYEE CHEQUES. NO MATERIAL CONTROVERTING THIS POSITION CANVASSED BY THE ASSES SEE HAS BEEN BROUGHT ON RECORD BY THE REVENUE. IN THE CIRCUMSTANCES WE FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE THAT THERE IS NO SCOPE FOR ANY ESCAPEMENT OF INCOME AND CONSEQUENTLY THERE IS ALSO NO JUST IFICATION FOR ANY ADDITION TO THE INCOME/LOSS RETURNED BY THE ASSESSEE F OR THE YEARS UNDER CONSIDERATION. 9. WE ALSO FIND MERIT IN THE CONTENTIONS OF THE ASSESSEE WITH REGARD TO THE NON-AVAILABILITY OF ACCESS TO THE BOOKS O F ACCOUNT WHICH REMAINED IN THE CUSTODY OF THE DEPARTMENT. IN THE COU RSE OF ULTIMATE APPELLATE PROCEEDINGS BEFORE THE CIT(A) WHICH CULMINAT ED IN THE IMPUGNED ORDER DATED 31.3.2009 THE CIT(A) WITH A VIEW TO EXAMINE THE VALIDITY OF THE CONTENTIONS OF THE ASSESSEE IN THAT B EHALF CALLED FOR THE SAME FROM ADDL. CIT RANGE 5 HYDERABAD VIDE HIS L ETTER DATED 1.10.2008. IN RESPONSE IT WAS REPLIED BY THE ITO WAR D 5(2) VIDE LETTER DATED 9.9.2008 ON THE FOLLOWING LINES- 'AS REGARDS THE DIRECTION TO SUBMIT THE SEIZED BOOK S OF ACCOUNTS IN THE ABOVE CASE I SUBMIT THAT NO SEIZED MATERIAL HAS BEEN HANDED OVER TO ME BY MY PREDECESSOR. THE STATUS REP ORT AS TO THE REQUISITION OF THE SEIZED MATERIAL BY THE DEPAR TMENT FROM COMMERCIAL TAX DEPARTMENT AND SUBSEQUENT EVENTS IS FURNISHED HEREUNDER- ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 9 FROM THE ABOVE FACTS IT CAN BE SEEN THAT THE DEPAR TMENT HAD OBTAINED THE BOOKS OF ACCOUNTS FROM THE COMM ERCIAL TAX DEPARTMENT HYDERABAD. BUT AS SEEN FROM THE CORRESPONDENCE MADE TOWARDS IMPOUNDING THE BOOKS OF ACCOUNT AND TH EIR SUBSEQUENT RELEASE THE BOOKS OF ACCOUNTS MIGHT HAV E BEEN GIVEN TO THE ASSESSEE. HOWEVER THERE IS NO PROOF ON RECORD TO SHOW THE RELEASE OF THESE BOOKS OF ACCOUNT TO THE A SSESSEE. FURTHER THE RECORDS IN THIS CASE HAVE NEVER BEEN H ANDED OVER BY ANY OF THE OFFICERS TO THEIR SUCCESSORS. HOWEVER WITH GREAT DIFFICULTY THE ASSESSMENT RECORDS FOR A.Y. 1986-87 AND 1987-88 WERE LOCATED AND SUBMITTED TO THE AUTHORITIES AS RE QUIRED.' IT IS CLEAR FROM THE ABOVE LETTER OF THE ASSESSING OFFICE R THAT HE IS DIFFIDENT AS TO THE STATUS VIZ. RELEASE OF THE BOOKS T AKEN OVER BY THE INCOME-TAX DEPARTMENT FROM COMMERCIAL TAX DEPARTMENT THOUGH HE ASSERTED ON THE ONE HAND IN THE FIRST PARA OF THE SAI D LETTER THAT 'NO SEIZED MATERIAL HAS BEEN HANDED OVER TO ME BY MY PRED ECESSOR' AND ON THE OTHER HAND IN THE LAST PARA THAT 'THE RECORDS IN THIS CASE HAVE NEVER BEEN HANDED OVER BY ANY OF THE OFFICERS TO THEIR SUCCESSOR S' . IN THE LIGHT OF SUCH ASSERTIONS AND DIFFIDENCE AS TO THE RELEASE OF THE BOOKS IN FAVOUR OF THE ASSESSEE IT IS OBVIOUS THAT NEITHER THE CIT(A) NO R THE ASSESSING OFFICER WERE HAVING ACCESS TO THE SEIZED MATERIAL WHILE MAKING THE ADDITIONS IN QUESTION DURING THE COURSE OF THE ULTIMATE ASSESSMENT AND APPELLATE PROCEEDINGS. IN THIS VIEW OF THE MATTER AN D IN VIEW OF THE UNCERTAINITY ABOUT THE RETURN OF THE SEIZED MATERIAL TO THE ASSESSEE NO ADVERSE INFERENCE CAN BE DRAWN AGAINST THE ASSESSEE. CONSEQU ENTLY BASED ON SUCH SEIZED MATERIAL WHICH WERE NOT AVAILABLE DURING THE COURSE OF ASSESSMENT AND APPELLATE PROCEEDINGS TAKEN UP IN PURSUANCE OF THE DIRECTIONS OF THE APPELLATE AUTHORITIES NO ADD ITION COULD BE MADE. IN ANY VIEW OF THE MATTER THEREFORE THE CIT(A) IN OUR CONSIDERED OPINION WAS NOT JUSTIFIED IN SUSTAINING ANY OF THE AD DITIONS MADE IN THE COURSE OF IMPUGNED RE-ASSESSMENTS. WE ACCORDINGLY DELETE TH E ITA NO.730-731/HYD/09 M/S. VENKATESH PAPER AGENCIES HYDERABAD 10 ADDITIONS MADE BY THE ASSESSING OFFICER IN THE COURSE OF RE ASSESSMENT AND ALLOW THE GROUNDS OF THE ASSESSEE IN BOTH THESE APPEA LS. 10. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 29.1.2010 SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT ACCOUNTANT MEMBER. DT/- 29TH JANUARY 2010. COPY FORWARDED TO: 1. M/S. VENKATESH PAPER AGENCIES C/O. SHRI K.L.RATHI ADVCOCATE 3-5-144/5 EDEN GARDEN HYDERABAD-500 001 2. ITO WARD-5(2) 7TH FLOOR IT TOWERS AC GUARDS HY DERABAD. 3. COMMISSIONER OF INCOME TAX IV HYDERABAD. 4. COMMISSIONER OF INCOME TAX (APPEALS) V HYDERABAD. 5. DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S.