Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 514 - HC - Income TaxAddition on salary received - addition on evidence of the statement made by the assessee’s wife - Held that:- It is borne out that the authorities proceeded on the basis of the statement made by the assessee’s wife that she was paying salary to the assessee every month. This statement had been denied by the assessee but the same was not retracted by the assessee’s wife. However, what remains to be seen here is that the revenue has not been in a position to bring any evidence on record so as to strengthen its case. Other than the statement made by the assessee’s wife u/s 134(2) of the Act which has been denied by the assessee, the revenue has not produced any substantial evidence to prove its case. Assessing Officer has erred in proceeding with the calculation of undisclosed income without there being any cogent and corroborating evidence to the statement made u/s 132(4). Moreover, the calculation made for the entire block period without any basis or material from the seized documents, in our opinion, cannot be permitted. In the case of Standard Tea Processing Co. Ltd. (2013 (7) TMI 539 - GUJARAT HIGH COURT ), this Court has held that as the materials admittedly related to a brief period between 01.4.1998 till 29.7.1998, in absence of any documents found during search to even link the assessee’s activities for the entire period, to project by way of extrapolation the facts found during the brief period of about four months would not be permissible and rightly so held by the Tribunal.In view of the above, we are of the opinion that the Tribunal has erred in coming to the conclusion that the assessee had received salary of ₹ 8000/- p.m. for the relevant block years in each year without evidence. The impugned order passed by the Tribunal is therefore required to be set aside. - Decided in favour of assessee
|