Yusuf Readymade Garments v. CCT

UTTAR PRADESH VALUE ADDED TAX ACT, 2008

--Assessment--Assessment based on books of account of third party towards alleged concealed income of assesseeValidity ----Even though books of account of the third person might have relevance for the purpose of assessment of assessee, however, in absence of any material being found therein representing concealed transaction of assessee, no addition could be made in assessee's hands. --Case of revenue was that pursuant to a search action based on the book containing the details of tailoring done by father of assessee addition were made in the hands of assessee. Issue arose for consideration, as to whether the book/diary during the survey admittedly belonging to the third party could be made basis for making an assessment upon assessee when it was not in existence during assessment Proceedings. Held: Even though books of account of the third person may have been relevant for the purpose of assessment of assessee, however, in absence of any material being found therein representing concealed transaction of assessee, neither any rejection of books of account nor any addition could be made in the case of assessment, for the sole proprietorship concern of assessee. Mere existence of blood relationship between persons involved in the two businesses is of no consequence.