Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (1) TMI 917 - ITAT, DELHIAdditions bases on amount recovered during search at IGAI airport against assessee - additions made on the basis of statement before customs authority - retracted statements - held that:- In the present case, obviously, the basis of the assessment order has diminished. The statements initially made have been successfully retracted. The proceedings under the Customs Act as well as under the FERA have been dropped. The department has not been able to discharge its burden of proof that the statements were not recorded under force, threat and coercion. In this regard, affidavits filed by the assessee before the AO have not been rebutted. - no addition can be based on a retracted statement, grievance raised by the assessee by way of grounds justified, the same is hereby accepted. The order under appeal is quashed qua these grounds Penalty- department's appeal contending that the learned CIT(A) has erred in deleting the penalty on the assessee u/s 271(1)(c) of the Income Tax Act, penalty is consequential to the addition dealt with hereinabove, CIT(A) has cancelled the levy of penalty for the reason that in the assessment order, the AO had nowhere arrived at a satisfaction regarding concealment of income or furnishing of inaccurate particulars of income, since order of CIT(A)'s quashed qua in the assessee's quantum appeal and thereby the addition forming the basis of levy of penalty no longer exists, cancellation of the penalty by the ld. CIT(A) is confirmed for this reason on merits
|