Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1549 - AT - Income TaxAddition u/s 68 - Addition based on duplicate sets of accounts found during the Survey - deletion of addition by ld. CIT(A) - HELD THAT:- The statement of one of the partner Mr. Gaurav R. Viradia was taken on 06.10.2007 who reached from Baroda on second day of survey. Genesis of the impugned addition was the duplicate set of books of accounts extracted from the residence of Mr. Kalpesh Vaghani but printed at the office of assessee on 09.10.2007. Mr. Kalpesh Vaghani came into picture during the course of survey when it was informed to the survey team that books of accounts are in the computer of Mr. Kalpesh Vaghani who has been appointed for preparing projected financial statements for the purposes of taking bank credit limits. The facts about the role of Mr. Kalpesh Vaghani also get affirmed by his affidavit which has not been challenged by the Revenue authorities, wherein it has been categorically stated that major modification were made in the actual books of accounts and various figures were inflated to show a bright financial future of the assessee firm and to make them fit as per the requirements of banking authority so that higher working capital limit is granted for the projects undertaken. Disclosure statement made by the partner Mr. Gaurav R. Viradia was retracted on 30th October, 2007 wherein he stated that contents appearing in the statements recorded on 06.10.2007 were never stated by him because it was practically not possible for him to work out such complex financial details in a small period of two to three hours that too after travelling by road from Baroda to Bhavnagar. Assessee firm’s partner Mr. Gaurav R. Viradia further denied in his retraction letter about the acceptance and payment of cash in the alleged duplicate set of books of accounts. No attempt was made either in the course of survey or subsequent to survey i.e. up to the date of framing the assessment to call and record the statement of Mr. Kalpesh Vaghani to extract the truth. Also no enquiry was conducted against the partners for the alleged additions in the assessee firm in the given facts when it was an initial year of commencement of business and there was no previous source of capital or accumulated funds of the assessee firm which could be treated as an unaccounted or undisclosed income. In the case of assessee also the statements taken u/s.133A of the partner Mr. Gaurav R. Viradia were later on retracted and the only evidence Revenue is harping upon is the duplicate set of books of accounts on which most of the entries, as admitted by the Accountant and the Consultant have been manipulated / enhanced / modified / re-arranged in order to prepare projected financial data to be provided to banks for getting sanctioned higher working capital credit limits for running the projects undertaken by the assessee firm. In view of totality of facts and discussion made above, we find no reason to interfere with the order of ld. CIT(A) who has deleted the impugned addition u/s.68. - Decided in favour of assessee.
|