2021 (7) TMI 944 - ITAT INDORE

Undisclosed income admitted in the statement made u/s 132(4) - CIT-A deleted the addition - HELD THAT:- From perusal of finding of Ld. CIT(A) and the facts placed before us it is clear that firstly surrender was on an estimate/tentative basis since no reference was made to specific assessment year, any undisclosed asset or unexplained expenditure or seized records. Secondly, disclosure was made before M/s Ramani Group could get the copies of seized records. Thirdly, after analyzing and examining the seized records M/s. Ramani Group has offered undisclosed income in the name of five assessees namely M/s. Ramani Ice-cream Company Ltd., Shri Girish Awatramani, Shri Vijay Hariramani, M/s. Windsor Infra & M/s. Ishaan Builders and Developers. Fourthly, the impugned addition is made merely on the basis of statement given u/s 132(4) of the Act without making any reference or placing any nexus with any incriminating material found during the course of search u/s 132 of the Act.

In case no incriminating material was found during the course of search whether the Assessing Officer can make addition merely on the basis of statement u/s 132(4) ? - Following the decision of this Tribunal in the case of Signature Builders [2021 (1) TMI 945 - ITAT INDORE] and also respectfully following the decisions referred hereinabove find no inconsistency in the finding of Ld. CIT(A) which is based on the examination of facts, settled judicial precedence and direction given in circular issued by Central Board of Direct Taxes and thus hold that he has rightly deleted the addition made by the Ld. AO solely based on the statement given u/s 132(4) of the Act without referring or placing any nexus to the incriminating material seized during the course of search u/s 132(4) of the Act. Thus, revenue fails to succeed in the sole ground - Ground no.1 of revenue’s appeal stands dismissed.