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2013 (8) TMI 987 - AT - Income TaxAddition on the basis of admission obtained in the statement recorded u/s 133A - Held that:- here is a circular of CBDT No. 286/2/2003, and dated 11/03/2003, which restrain the survey team from taking forcible surrender. The mere fact that the survey team collected cheques in respect of advance tax payable on such surrender, is self evidence of possible pressure which may have been exerted on the assessee.The assessee has filed detailed working of stock available on the date of survey, the copies of which are again enclosed in AR’s paper book on page 28 to 36. The A.O. has made a addition of ₹ 25,68,277/- solely on the basis of the statement recorded at the time of the survey. This addition has been reduced by a sum of ₹ 3,24,000/- by correcting mistakes pointed out in the inventory, and has been sustained at ₹ 22,46,217/-. There are a raft of decision to the effect that solely on the basis of admission obtained in the statement recorded u/s 133A no addition can be made. - Decided in favour of assessee Disallowance of interest paid to the creditors - Held that:- In fact a sum of ₹ 2.5 lacs was paid to S.P. Jain Management Institute, Mumbai, for the admission of his son in MBA. Later this amount was referred to the assessee who debited the same in his books in the name of S.P. Jain Management Institute instead of debiting his capital account. So the authorities guessed that this amount has been availed of without paying interest and therefore, an addition of ₹ 30,000/- as notional interest was made. Thus it is undisputedly found that there was a opening capital of ₹ 55,97,139/-and closing capital was of ₹ 75,52,870/- (APB – 22) on which no interest has been claimed. In these circumstances, the charging of notional interest is not justified. The A.O. has not even been able to establish nexus between the two. - Decided in favour of assessee
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