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2017 (11) TMI 460 - HC - Income TaxUnaccounted income - addition on the basis of statement of the partner of the assessee firm during survey proceedings - statement was retracted later - Held that:- From the documents on record, it emerges that in a statement of the partner of the assessee firm during survey proceedings disclosure of unaccounted income of ₹ 2.35 crores was made. This statement was, however, retracted to the extent of unaccounted income of ₹ 1.59 crores. Rest of the disclosure was maintained. The reasons were also cited for retraction. The assessee firm filed the return admitting an income of ₹ 89.13 lacs, which included unaccounted income of ₹ 76.10 lacs. The Assessing Officer, despite such developments proceeded to make addition of the entire sum of ₹ 2.35 crores admitted by the partner in a survey statement, which was later on retracted. In appeal, the CIT(A) deleted the addition primarily on the ground that no addition can be made solely on the basis of a retracted statement made during the survey operation, particularly, when proper justification for retraction was also offered. It is this view, which the Tribunal confirmed in the impugned judgement. We see no error. No question of law arises
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