TMI Blog2015 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing officer and hence affidavit which seems by the assessing officer is as a retraction of statement is not the afterthought. The assessee has filed affidavit immediately when he knew the facts. There was no just and fair disclosure by the assessee. He was forced to state only so that the Department and or so called investigating officer can use it & take action against the seller of the properties under such type of falsely confession. Before us, DR simply relied on the order of the AO and could not point out any specific error in the order of the CIT(A). The DR even before us could not explain why and in what circumstances statement under section 131 of the assessee was recorded by the AO. Therefore, we do not find any good reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had categorically admitted on oath that the on money payment for purchase of plots by family members was made out of his unaccounted income. 3. It is therefore, prayed that the order of the Id. CIT(A) be set aside and the Assessing Officer's order be restored. 3. We have considered rival submissions and perused the orders of the lower authorities and material available on record. 4. Brief facts of the case are that the assessee is engaged in the business of manufacturing of grey cloth under the name and style of Prakash Textile . The assessee filed return of income for the Asstt.Year 2002-03 on 4.2.2003 showing income of ₹ 92,250/- which was processed under section 143(1) of the Act accepting the return of income. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so observed that the disclosure made in the statement recorded u/s.131 of the Act cannot be swept away lightly. He, therefore, held that the retraction made by the assessee of ₹ 15.12 lakhs out of the undisclosed income during the course of statement recorded under section 131 of the Act on 21.9.2006 is added back to the income of the assessee. 6. On appeal, the CIT(A) deleted the addition for the following reasons: 6. I have considered the rival contentions. Before coming to any conclusion following facts will have to be taken into account: i) The A.O. has nowhere mentioned in the assessment order as to why and in what context the statement of the appellant was recorded u/s.131 of the Act. It has also not been mentioned ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee submitted that in the course of assessment proceedings, the AO has not found any investment in immovable properties, and also not found any unaccounted income earned by him during the year or prior to that period. He submitted that the AO has stated in Para 4.1 which are produced here under: In this case, a statement u/s. 131 of the Income Tax Act recorded from the assessee on 21.09.2006, wherein he has categorically disclosed an amounts of ₹ 15 -12 lacs paid as on money for purchase of two plots (30/1 31/1 at Sr. No. 35,TPS - 5 , Moje Umra, Surat). In his statement, he has disclosed this amount as his on - money payment for Purchase of the said plots for the F. Y. 2001- 2002 relevant to A. Y. 2002 -03. The relevant porti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on-money on the said plots does not arise at all. We enclose herewith copy of sale Deeds marked as Annex-B and on perusal thereto, you can easily ascertain who are the purchasers seller of the properties. The assessee has categorically denied for purchasing any such property and payment of any such on-money. This fact is disclosed vide letter 16.12.2009 in response to SCN issued by the assessing officer. (Copy annexed herewith marked Annx.-C). The learned assessing officer intentionally skipped the facts about SCN reply of the assessee dated 16.12.2009 and no reference has been made in the assessment order. Similarly, the assessing officer has again failed to disclose the facts mentioned in the affidavit filed by the assessee in re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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