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2015 (1) TMI 58 - AT - Income TaxAssessment framed u/s 158BC r.w 158BD – retraction of statement - Documentary evidences not properly examined – Held that:- it is settled principle of natural justice that if statement of any person is relied against any person, the copy of such statement should be furnished to the person against whom such statement is required to be used - The affected also should be afforded an opportunity to cross examine the person making such statement - Since no enquiry with such other persons they have retracted their earlier statement and having also filed the affidavit in this regard, the assessee was not required to prove anything further - The AO cannot rely upon statement of his witnesses after the same retracted. The AO has not proved that the affidavits filed by these persons are incorrect - Thus, after the retraction of the statements by these persons no evidence remains with the AO to hold that the transactions by the assessee with these three persons is not genuine and the assessee has also paid unaccounted commission - the present assessments are made u/s. 158BC - The undisclosed income can be computed only on the basis of material found as a result of search and such other enquiry relating to such material - During the course of search, no material is found which suggests that the assessee has incurred unaccounted expenditure by way of commission for so called sales transactions - Thus, no part can be included in the computation as undisclosed income for the block period - after going through the orders passed by the Revenue Authorities along with the documentary evidence filed by the parties, the documentary evidence filed by both the parties requires thorough examination at the level of the AO afresh under the law – thus, the matter is remitted back to the AO for fresh adjudication after considering the documentary evidence, as per law – Decided in favour of assessee.
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