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2017 (11) TMI 683 - HC - Income TaxAddition of undisclosed income - addition on the basis of assessee’s statement, retracted by specific affidavit - addition made by the respondent u/s 145(3) - rejection of books of accounts - Held that:- Firstly, the statement which was recorded on 23rd February, 2005 if it is taken alongwith the letter dated 23rd February, 2005 at Annexure-A, the contention raised by the appellant with regard to retraction is supported by his own letter. Apart from that the refund was granted on 19th October, 2005 and taking subsequent proceedings u/s 147, the contention raised by the assessee with regard to retraction is required to be accepted. The Tribunal, CIT(A) and the AO has seriously committed an error in adding income ₹ 2,70,248/- in spite of affidavit of 20th November, 2007 and letter dated 23rd February, 2005 and rejection of books of accounts u/s 145. The statement which has been made by the appellant that the assessee was compelled to make statement in view of goods which was attached was of pericible nature and the cost was three times of tax which are required to be paid therefore, it was contended that the assessee will adopt easy way to be caught hold of the tax authority. Tribunal has seriously committed an error in adding ₹ 77,298/- ignoring provisions of the act therefore, both the issues are required to be answered in favour of the assessee.
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