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2020 (12) TMI 523 - ITAT PUNEAddition on the account of errors and omissions - assessee declared additional income on the basis of notings made on loose papers during the survey action - AO was of the opinion that the assessee is not justified in offering an amount towards errors and omissions - HELD THAT:- In the certain proceedings the survey team impounded evidence against the assessee and on such confrontation the assessee himself on oath conceded that the above said amounts are not recorded in the regular books of account and not declared by the Income Tax Department which in our opinion constitutes on additional income. The only contention raised before the lower authorities below by the assessee that the said amount was declared on ad-hoc basis, in our opinion it is away from truth because there was no retraction by the assessee from the date of survey to the filing of return of income to that effect - AO has not merely relied upon declaration made by the assessee in his statement recorded in the course of survey action whereas the assessee himself clarified the reasons due to which the additional income earned in the answer to Q. No. 11 which is reflecting in page 2 of the AO. Assessee placed reliance in the instructions dated 10-03-2003 issued by the CBDT wherein we note that in the said instructions the CBDT has advised CCIT and DGIT that no addition should be made solely on the basis of declaration made by the assessee in the statements recorded during the course of survey - assessee himself explained how he earned the additional income of ₹ 1,07,67,799/- and to cover up such errors and omissions the assessee himself offered ₹ 72,32,201/-. It is noted there was evidence against the assessee in earning the said additional income and the arguments of that without there being any adverse material the addition made by the AO is invalid, in our view is not acceptable. Thus, the instructions of CBDT as placed reliance by the assessee is not applicable to the facts and circumstances of the present case. - Decided against assessee.
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