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2015 (3) TMI 750 - AT - Income TaxAdditions on the basis of Admission / statement made during survey - statement retracted later - whether Assessing Officer has failed to establish by bringing on record any evidence that addition of ₹ 5,00,000 and ₹ 69,00,000 was warranted and called for - amount of ₹ 75 lakhs is surrendered as additional income for the financial year 2008-09 over and above any regular income as per books of account - Held that:- We fail to understand that once the assessee has retracted from surrender within seven days and has in fact complained against high headedness of the survey team led by the Additional Commissioner of Income-tax, what prevented the Department from making any enquiries in respect of the persons from whom so called receivables were there which had not been recorded in the books of account. As held by the hon'ble Supreme Court in case of Pullangode Rubber Produce Co. Ltd. v. State of Kerala [1971 (9) TMI 64 - SUPREME Court] that admission is important piece of evidence but the person making admission can show that such admission is not correct. Once this was done by the assessee, the onus was on the Revenue to make enquiries and only then some addition could have been made on the basis of such enquiries. The submissions clearly show that no address is mentioned. It does not indicate that the amount is receivable. If the assessee admitted during the survey that these amounts represent receivables, the Revenue should have at least extracted address of such persons and when the assessee retracted from the surrender then the statements of these persons should have been recorded which has not been done. There is a clear cut overwriting in the inventory of notes of ₹ 500. Further there is no mention about any note found in the denomination of ₹ 50. These features also create doubt regarding the genuineness of the survey. Thus addition has been made without any evidence and is merely on the basis of statement recorded during the survey which cannot be sustained. Accordingly we set aside the order of the learned Commissioner of Income-tax (Appeals) and delete the addition. - Decided in favour of assessee.
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