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2020 (1) TMI 454 - ITAT COCHINEstimation of profit on undisclosed turnover - Addition @50% and granting relief @50% - assessment u/s 153A after search and seizure proceedings - Reliance of the statements u/s 132(4) of the assessee and third parties - retracted statements - Held that:- a sworn statement, though binds the assessee, it cannot be the sole basis for making the assessment. It is open to the assessee to show the circumstances in which confessional statements were recorded and once the assessee proves that confessional statements were recorded under threat and coercion and retracts from the same, the confessional statements cannot be the sole basis for making assessments or for making any addition in the hands of the assessee. From the circular, Circular, it is amply clear that the CBDT has emphasized on its officers to focus on gathering evidences during search/survey operations and strictly directed to avoid obtaining admission of undisclosed income under coercion/under influence. Keeping in view the guidelines issued by the CBDT from time to time regarding statements obtained during search and survey operations, it is undisputedly clear that the lower authorities have not collected any other evidence to prove that the impugned income was earned by the assessee. From the details of seized document, The Assessing Officer presumed that it represents the sale of wheat products. There is no basis for such assessment order. The Assessing Officer had not examined any of the parties mentioned therein and he presumed that Shri P.K. Kunjumoideen was acted on behalf of the assessee and he was selling the wheat products like maida, sooji, atta and bran. For this, the Assessing Officer relied on the sworn statement of Shri P.K. Kunjumoideen, Shri Premil Deep and Shri Sabarigireesan. Further, these statements have no evidentiary value in view of retraction made by these persons immediately the next day. Hence, what was left to rely on was the seized document cited supra. The seized document suggest that the assessee was engaged in the sale of wheat products from Tee Kay Rice Mills. The sole basis on which the Assessing Officer presumed that the assessee was selling the wheat products through Shri P.K. Kunjumoideen is collapsed. The estimation of production of wheat products and selling thereof have no basis and it is only a presumption without any basis. In our opinion, the entire evidence has to be appreciated in a wholesome manner and even where there is documentary evidence, the same can be overlooked. If there are surrounding circumstances to show that the claim of the assessee is opposed to the normal course of human thinking and conduct or human probabilities. Even applying this principle to the present case, there was difficulty in rejecting the assessee’s plea as opposed to the normal course of human conduct. The circumstances surrounding the case were not strong enough to justify the rejection of assessee’s plea as untrue. Accordingly, we delete the additions made by the Assessing Officer towards undisclosed sales of wheat products for all the assessment years. Thus, the appeals of the assessee are allowed.
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