TMI Blog2014 (10) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... other unverifiable creditors, the total amount of surrender came to the tune of ₹ 2.20 crore only - even the AO has not pointed out any evidence or material entered in the loose papers or diaries or incriminating documents which could justify addition over and above of ₹ 3.00 crore or even ₹ 5.00 crore or more. The AO has not found or bothered to found or traced anything additional as a result of survey from the assessee except relying on the recorded statements at the time of survey and therefore this view found favour with the two appellate authorities that the funds are arising from the same business and have a direct nexus and the income was invested/utilized during the year - the conclusion reached by the ITAT i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of survey, statement of the assessee-respondent was also recorded wherein on the basis of impounded loose papers, diaries, documents etc. he surrendered a total sum of ₹ 8 crore which comprised of income of ₹ 2 crore in the assessment year 2007-08; ₹ 5 crore for the current year and ₹ 1 crore for the assessment year 2009-10. In the assessment year 2007-08, though the assessee had surrendered ₹ 2 crore but in the return of income an additional income was offered to the tune of ₹ 1.5 crore only and even the AO was satisfied and accepted ₹ 1.5 crore and he passed assessment order for the assessment year 2007-08 on 24/12/2009. 3. In the revised return, for the assessment year 2008-09 which is und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptance of the said surrender, however, the AO was not satisfied and merely because the assessee had surrendered an amount of ₹ 5 crore, during the course of survey an addition of ₹ 2 crore was made by the AO. 4. Dissatisfied with the addition of ₹ 2 crore, as aforesaid, the matter was carried in appeal before the CIT(A) and the CIT(A), after analyzing the evidence on record and the explanation so offered, gave a further relief of ₹ 1.50 crores and sustained addition to the tune of ₹ 50 lacs. 5. Dissatisfied with the deletion as well as sustenance, both i.e. the revenue as well as the assessee preferred appeal before the ITAT and the ITAT vide order impugned allowed appeal of the assessee and further dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the evidence placed by the assessee, has accepted the surrender to the tune of ₹ 3 crore which was made in the return of income and is based on appreciation of evidence and it is a finding of fact. The assessee gave an explanation supported by material on record, that on the basis of the documents and whatever was un-recorded in the diary/loose papers/other unverifiable creditors, the total amount of surrender came to the tune of ₹ 2.20 crore only. However, additionally the assessee, on account of the other defects, transactions in diary or other transactions in the books of accounts, which might have escaped the attention of the assessee, offered further amount of ₹ 80 lacs to make the total surrender to the tune of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or bothered to found or traced anything additional as a result of survey from the assessee except relying on the recorded statements at the time of survey and therefore this view found favour with the two appellate authorities that the funds are arising from the same business and have a direct nexus and the income was invested/utilized during the year under consideration. In our view, the conclusion reached by the ITAT is based on the appreciation of evidence and is reached on the basis of finding of fact. It is also a finding of fact admittedly that in assessment year 2007-08 despite surrender in statements of ₹ 2 crore the income was offered at ₹ 1.5 crore only and accepted by the Revenue/A.O. 9. Thus, the ITAT, after app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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