TMI Blog2013 (12) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... found. If there no shares were purchased and assessee has paid only 2.50 Lakh in advance then ofcourse, addition should not have been made only on the basis of statement made u/s 132(4) - there should be some corroborative evidence – but there was no corroborative evidence found from which it can be said that assessee has made investment of Rs. 60 Lakh - Only on the basis of statement recorded u/s 132(4) this addition has been made and sustained - no addition could be made or sustained simply on the basis of statement recorded at the time of survey/search - AO made addition on the basis of statement recorded and no other enquiry has been made, neither case has been examined properly, nor the fact that the company in which the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Hot Pvt. Limited and had made payment in cash for acquisition of the shares. Statement u/s 132(4) was recorded on 5.6.2007. in answer to question no. 21 Shri Yogesh Thakkar stated as under:- Yes I have gone throught all the discriminating paper found durint he search operations and I have also introspected myself and on the basis of that I make a declaration of unaccounted income as under. 1. Persian Agro Hot Enterprises Rs. 60 lakhs 2. Cash Receipt Rs. 40 lakhs 3. Unaccounted Investment in Jewellery Rs. 20 lakhs 4. Unaccounted income as per loose papers Rs. 5 lakhs 4. During the assessment proceeding Assessing Officer noted that during the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wellery, bill of exchange and other valuables found during the course of search. Accordingly it was submitted that no addition was warranted. However Assessing Officer did not accept the contention of the assessee as one of the directors of the company i.e. Shri. Yogesh Thakkar has admitted himself that he will declare a sum of Rs. 60 lacs on account of purchase of share from M/s Persian Agro Hot Enterprises. Accordingly, he made an addition of Rs. 60 lakhs. Order of the Assessing Officer was challenged before CIT (A), before whom detailed arguments were advanced. It was submitted that only Rs. 2.50 lakhs was given as advance for purchase of shares. It was also submitted that company has already offered a sum of Rs. 3 crore which covers all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e year in consideration and amount of Rs. 65 Lakh for assessment year 2008-09. However while, filing the return no such amount was declared by the assessee as assessee retracted from the statement, for the reasons that no such investment was made in shares as only Rs. 2.50 lakh was given as advance on account of purchase of share. Neither there was any purchase was made by the assessee nor any incriminating documents were found. May be, since there was a search action and assessee may not having any full knowledge of affairs, therefore amount of Rs. 60 Lakh may have disclosed. Even and otherwise as stated that in hands of company already a sum of Rs. 3 Crore has been offered for taxation, tax has already been paid and the amount surrendered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the search and any investment made in jwellery etc. Therefore, we restore the issue to the file of Assessing Officer to examine afresh after affording reasonable opportunity of being heard. The Assessing Officer is also directed to take into consideration the submission that only a sum of Rs. 2.50 lakh were found given as advance on account of purchase of shares and in fact no shares were purchased as deal had not finalized. The Assessing Officer will also take into consideration the amount of rs. 3 Crore surrendered by the company and if it is found that there is no material against the assessee to hold that share has been purchased and if purchased then this purchase amount is covered by the amount of surrender in the hands of compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee agreed to show the income. 13. We have already discussed the issue in detail. The assesse s main argument is that these amounts are covered by the amount of Rs. 3 Crores surrendered by the company. This aspect was also not examined by the Assessing Officer for the simple reason that as per statement of Shri Thakkar the addition was made. We have already held that only on the basis of statement, addition should not have been made as there should be some corroborative evidence. And if the assessee has already surrendered a sum of Rs. 3 Crore, which covered these amount also, then of course addition should not have been made as the same will tantamount to double addition. For examination of these facts, we restore the issues to the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
