TaxTMI 
TaxTMI 
2015 (8) TMI 1196
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....f ` 1,72,830/-. A survey under Section 133A of the Income-tax Act, 1961 (in short 'the Act') was conducted in the business premises of the assessee on 09.08.2011. During the course of the survey, the assessee has admitted an undisclosed income of ` 67,00,780/-. Further, during the survey, the A.O. has found that an amount of ` 81,90,721/- was shown as outstanding credit balances against various parties from whom purchases were made and these credits were shown to have been paid off through cheques in subsequent years. On verification from the bank, it was found that the cheques were only self cheques. A sworn statement was recorded from the Managing Partner Shri M. Loganathan under Section 131 of the Act wherein the partner admitted....
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....hose name the expenses were accounted. Para 1.5 we also submit that a) At that point of time, it would be very difficult for us to identify the real suppliers with whom we had transacted and produce the letters from them confirming our business transactions with them. b) Moreover, this would affect our business relationship also. Para 1.6 We also submit that therefore, considering the difficulty narrated above, and to avoid consequential business disruptions, during the course of survey, we agreed to offer ` 67,00,780/- as our business income for the financial year 2008-09 with a request not to levy penalty. Para 1.7 Consequently, during the assessment proceedings, on the basis of the pretext that no penalty would be levied, we had vol....
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....y the Managing Partner has no evidentiary value. For that, he relied on the decision of Hon'ble Supreme Court in the case of CIT v. S. Khader Khan Son (2013) 352 ITR 480 (SC). 6. On the other hand, the Ld. D.R. has submitted that the Managing Partner of the assessee-company himself has accepted that there are fictitious payments and based on that statement, the penalty is imposed. He strongly supported the orders passed by the authorities below. 7. We have heard both sides and perused the records and gone through the orders of the authorities below. There was a survey conducted in the business premises of the assessee on 09.08.2011. During the course of survey, the A.O. has recorded a statement under Section 131 from Shri M. Loganatha....
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....mand us to purchase items from local unorganized vendors who would not maintain any details. Even though we might have really transacted with the concerned parties, we would not be able to co-operation from those vendors in the unorganized sectors to prove the genuineness of the transactions carried out with them. It is also submitted that it would be very difficult for us to identify the real suppliers with whom we had transacted and produce letters from them confirming the business transactions because the unorganized sector parties keep moving from one place to another place. However, the A.O. has not agreed with the submissions of the assessee and came to a conclusion that assessee has concealed the income and accordingly, he levied pen....