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2019 (3) TMI 1006 - HC - Income TaxAddition based on search and seizure operation - surrender made voluntarily - incriminating material or the surrounding circumstances reveal that there is any material to justify the addition - ITAT deleted the addition - confession during the course of search and seizure operation - HELD THAT:- The Tribunal as well as CIT(Appeals) after recording finding of fact in favour of the assessee has rightly deleted the addition of ₹ 7 crores as there is no incriminating document or material on record which could be a good ground for addition of seven crores be added in the hand of the assessee. Circular dated 10.3.2003 F. No. 286/2/2003- IT (Inv) held that more confession during the course of search and seizure operation cannot be a ground for addition in the income of the Assessee. Therefore, the case law relied upon by the Appellant is of no help. The case in hand the assessee has given documents, material and explained threadbare with regard to amount of ₹ 24 crores but the assessing authority has mechanically made the addition of ₹ 7 crores and added back the same amount only on the basis of statement having been made by the assessee which is not permitted. There is no legal infirmity in the order passed by the Tribunal. The assessee-respondent in the statement given on 6.10.2005, has surrendered ₹ 18 crores on account of investment made in purchase of jewellery/precious stones and ₹ 6 crores were surrendered as cash in hand duly shown in the books of account, balance ₹ 7 crores were surrendered with stipulation that details of the same would be given in due course of time. The assets to the magnitude of ₹ 7 crores were neither found by the authorities below nor such assets were identified or declared by the appellant. In such a situation, it could be inferred that no such assets actually exists. In other words, there is no clinching evidence or material to justify such addition of ₹ 7 crores. The case in hand the assessee-respondent has given documents, material and explained threadbare with regard to amount of ₹ 24 crores but the assessing authority has mechanically made the addition of ₹ 7 crores and added back the same amount only on the basis of statement having been made by the assessee which is not permitted. No legal infirmity in the order passed by the Tribunal. - decided against revenue.
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