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2013 (11) TMI 55 - AT - Income TaxUndisclosed investment - assessment u/s 153C - Income found during search and seizure - CIT deleted addition - Held that:- Assessee had disclosed income in respective companies by way of change in method of accounting or say by recognizing changing the method of the income. Assessing Officer had not pinpointed any defect in this method. During the assessment proceedings as well as in the remand reports called by the CIT (A), the Assessing Officer has not quantified any concealed income. These assessees were part of the 'Sareen Group' although Shri Shravan Gupta was Director in these companies but these companies were controlled by 'Sareen Group' persons only. Overall discloser by all these persons had been made of Rs.335.66 crores. The income disclosed by these assessee companies had not been challenged on the basis of any evidence except the initial bifurcation of undisclosed income. Therefore, in our considered view, the disclosure made by Shri Shravan Gupta during the search operation and which has been further enhanced, shall not have adverse impact on income disclosed in the return of these assessees. Only on the basis of ad hoc bifurcation of the disclosure or surrendered income at initial stage of proceeding and in absence of any incriminating document shall not make such addition sustainable. Overall disclosure was of a high amount. Initial bifurcation was not based on any reliable calculation in view of changed method of recognizing income. The fact shows that these bifurcations were made on ad hoc basis only. It was not even based on any seized material. No statement u/s 132(4) of the Act recorded in these companies. Neither the authorized officer during the search operation nor Assessing Officer had worked out any concealed income supported by any document. Hence, no adverse inference can be drawn when assessee filed return of income by making income on the basis of changed method of accounting - Decided against Revenue.
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