Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 444 - AT - Income TaxAdditions us/ 69 / 69A towards undisclosed income found during the course of survey u/s 133A - unexplained stock - Addition based on the statement of the Director of the Company - retraction of the statement by way of letter - corroborative evidence to substantiate the addition - admission of additional evidence - Held that:- The retraction, if any, has to be based on the records and with proper documentary evidences which prove that the documents based on which the disclosure or the additional income has been offered were faulty. CIT(A) deleted the addition by observing that, "Assessing Officer has simply rejected the explanation of the assessee merely n the ground that valuation was accepted by the assessee before the survey party and difference was offered from taxation. In my opinion, if the assessee can demonstrate that valuation adopted by the survey party was wrong with reference to the materials on record, then addition cannot be justified merely on the ground that it was offered for taxation. Though, the admission of the assessee is piece of evidence but the assessee can demonstrate that admission was wrong." - Order of CIT(A) sustained - Decided against the revenue. Admission of additional evidences under Rules 46A - Held that:- a conflict of opinions expressed by the revenue by holding that the submissions are only reiteration of earlier submissions and having grievance for allowing them under Rule 46A by the ld. CIT (A). - the ld. CIT (A) has given adequate reasons for admitting the additional evidences - Objection of the revenue rejected. Entitlement of deduction u/s 10A of the Act on the higher profits determined owing to the survey operation in a concern having unit at SEZ - Held that:- the Section seeks to promote and boost new business undertakings situated in free trade zones by providing suitable deductions - It provides for a 100 percent deduction of profits and gains derived by undertakings engaged in export of articles or computer software. In the instant case, the amount determined by the revenue by the assessee does not partake the nature of manufacturing and export of goods or articles. Hence, the benefit of the provisions of Section 10A cannot be accorded to the assessee in the instant year. - the Cross Objection of the assessee is dismissed.
|