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2017 (2) TMI 1098 - AT - Income TaxBifurcation via statutory disallowances under section 14A , 36(1)(va) and disallowance of claim under section 80IA - Held that:- The first two items of the table i.e. ₹ 25,98,406/- and ₹ 17,476/- have been added by the Assessing Officer to the total income of the assessee separately and, hence, no such addition could be made as a part of additional income declared. Further, the Assessing Officer himself has stated that the statutory disallowance cannot form part of the declaration and, hence, he has rejected such break-up. Here, we are in agreement with the view of the Assessing Officer that statutory disallowance cannot form part of adhoc declaration. However, the correctness of the addition on account of adhoc declaration has to be examined on the strength of its own merit, accordingly we confirm the addition of ₹ 1,99,850/-, ₹ 5,17,000/-, ₹ 23,42,900/- and ₹ 3,88,377/-. The last amount of the table being ₹ 2,39,35,991/- being disallowance of the part of the claim u/s. 80IA(4) of the Act is again a statutory disallowance and cannot form part of disclosure. In any case, the issue of disallowance of the claim u/s. 80IA(4) of the Act is subject-matter of Departmental appeal before us.By following the order of Tribunal in assessee’s own case, we have deleted the disallowance of deduction claimed u/s.80IA(4). Thus, the ad hoc addition of ₹ 3 crores (and for that matter the adhoc addition of ₹ 1 crore) cannot be supported by any figures mentioned in Annexure A-2 or Annexure A-3. As Board itself is of the view that in the absence of credible evidence the confessional statement would not serve any useful purpose. In fact going further i.e. from 10.03.2003 onwards, the Board mandatorily directed the officers that while recording statement, no attempt should be made to obtain confession as to the undisclosed income. Therefore, in the present case not only the recording of confessional statement but making the addition solely on the basis of the statement is against the binding instructions of the CBDT. In view of the above discussion, we confirm the addition of ₹ 1,99,850/- ₹ 5,17,000/-, ₹ 23,42,900/- and ₹ 3,88,377/- out of the total addition made by AO.
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