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2021 (2) TMI 329 - ITAT CHENNAIAddition u/s 69 - On-money payment for purchase of property - admission in a statement recorded u/s.132(4) - during the course of search executive diary maintained by assessee was found and seized which indicates on-money payment for purchase of property and same has been confirmed by assessee in the statement recorded u/s.132(4) - assessee has filed retraction statement with necessary evidence and retracted from his earlier statement regarding on-money payment - HELD THAT:- No doubt, addition cannot be made only on the basis of statement recorded during the course of search. But, if admission in a statement recorded u/s.132(4) is corroborated with evidences collected during the course of search, then authorities are empowered to make additions on the basis of such statements. However, in this case, before making any addition, the Assessing Officer should have examined the claim of assessee in light of report/order of Chief Revenue Officer /Inspector General of Registration, Chennai or determine value of the property by conducting further enquiry or referring valuation to Departmental Valuation Officer (DVO). In this case, although assessee has filed order of Chief Revenue Officer /Inspector General of Registration, Chennai, but the Assessing Officer as well as learned CIT(A) has not taken said order into cognizance, while adjudicating the issue. Even the Tribunal has not considered the plea of assessee in light of the said evidences. In our considered view, order of Chief Revenue Officer /Inspector General of Registration, Chennai is not a relevant criteria to decide whether assessee has paid on-money or not, but it may be one piece of evidence to ascertain correct facts with regard to value of property Since, the assessee has taken a plea in light of said order/report of Chief Revenue Officer /Inspector General of Registration, the Assessing Officer ought to have considered the order before arriving at conclusion that assessee has paid on-money payment for purchase of property, even though the Assessing Officer is not bound to accept the order of Chief Revenue Officer /Inspector General of Registration, Chennai. Appeal needs to be set aside to the file of Assessing Officer to reconsider the issue - Appeal filed by the assessee is treated as allowed for statistical purposes.
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