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2019 (7) TMI 367 - AT - Income TaxAddition on the basis of statements given in survey operations u/s 133A - in statement assessee offer a sum of ₹ 83.33 lakhs and subsequent retracted, latter on by way of another letter offer a sum of ₹ 50.00 lakhs - HELD THAT:- We have noticed that the survey operations took place on 14th and 15th of February, 2018, meaning thereby, the assessee was having sufficient time between the dates of survey and the date of filing letter dated 26.04.2013, wherein the additional income of ₹ 50.00 lakhs was surrendered. This is further fortified by the fact that the assessee himself has agreed to offer a sum of ₹ 50.00 lakhs in his letter filed subsequently, which would mean, the assessee itself has arrived at the figure of ₹ 50.00 lakhs by duly examining the surrounding facts. When there is basis for ascertaining the undisclosed income, then, we are of the view that the CIT(A) was justified in holding that the various decisions relied upon by the assessee are not applicable to the facts of present case. Quantum of addition - enhancement by CIT(A) - HELD THAT:- Assessee was ignorant of the basis under which the additional income of ₹ 83.33 lakhs was arrived. Hence the assessee has asked for the basis of arriving at the figure of ₹ 83.33 lakhs in his letter dated 18.02.2013 (within three days of survey operations). It appears that the assessee was not given the basis. Even at the time of hearing before us, D.R could not furnish the basis for the amount of ₹ 83.33 lakhs. Thus, it can be noticed that the revenue is unable to furnish the basis for determining the additional income of ₹ 83.33 lakhs and hence the assessee is also not aware of it. Assessee could arrive at the additional income at ₹ 50.00 lakhs and agreed to offer the same, even though the assessee also did not furnish the details thereof. In any case, the fact remains that the basis of determining additional income of ₹ 50.00 lakhs is within the personal knowledge of the assessee. We notice that the said offer has been accepted by the AO, even though the assessee did not offer the said amount also in the return of income. CIT(A) was not justified in enhancing the addition to ₹ 83.33 lakhs without furnishing the break-up details and basis thereof. Since the basis of determining the additional income of ₹ 50.00 lakhs offered by the assessee in his letter dated 26.04.2013 is within the knowledge of the assessee, we are of the view that the same should be added as additional income of the assessee. AO has added the sum of ₹ 50.00 lakhs as per the letter dated 26.04.2013 and in our view, the AO was justified for the same. Appeal of the assessee is partly allowed.
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