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2018 (11) TMI 374 - AT - Income TaxEstimation of income - rejection of books of accounts - voluntary declaration of additional income - Held that:- Since the assessee has voluntarily declared ₹ 30 lakhs as additional income, AO should have verified the basis of declaring additional income and should have verified the books of account and estimating the income merely relying on the statement given by the partner, is not correct. In our view, estimating the income without properly verifying the books of account nor rejecting the books of account is also not proper. The Hon’ble Supreme Court in the case of CIT Vs. S. Khader Khan Son [2013 (6) TMI 305 - SUPREME COURT] held that statement recorded u/s 133A has no evidentiary value and any admission made during such statement cannot be made basis of addition. Therefore, the statement recorded during the survey proceedings cannot be relied upon to complete the assessment and estimating the taxable income relying on such statement. We reject the estimation of income made during this AY under consideration. Since the assessee has already declared additional income, the same may be considered as taxable income for this AY under consideration. Additional service tax liability - Held that:- We find that assessee has not claimed the above liability as expenditure since the assessee is not aware of the expenses of the liability before filing of the return of income and also assessee has not made payment before filing return of income. Therefore, assessee is not eligible to claim this additional liability in this current AY and assessee can claim this additional liability in the year in which it makes the payment and claim it as expenditure in the year of payment.
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