TMI Blog2013 (5) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... e surrender made by the assessee during the course of survey u/s 133A which was ever retreated by the assessee. 2. The Ld CIT(A) has grossly erred in deleting the addition made by the Assessing Officer on account of remuneration paid to non working employees of the proprietary firm of the assessee not appreciating the fact that the assessee had given statement on oath surrendering the above amount during the course of survey u/s 133A. 3. The appellant craves to add, amend or modify the grounds of appeal at any time. 2. The brief facts of the case are that return of income was filed on 31.10.2005 declaring an income of Rs..30,89,100/-. However, assessment u/s 143(3) was completed on 24.9.2007 at an income of Rs..34,68,380/-. A surve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring his life time. After his death, I come to know that for his business purposes, he has pledged his all business as well as personal assets including insurance policies etc. In this manner, I have to say that the office premises, godown, my residence, his business assets like stocks and debtors etc. all are pledged with the banks and I do not .have any money to survive and to look after my two daughters. I do not have any source of income. In such manner, I have to state that I do not have any sum to meet out any liability statutory or otherwise. It come to my knowledge from your notice that there was a survey conducted by your department and a sum of Rs.. 1,07,69,764/- was taken as addition in his capital and Rs.. 5,64,000/- was s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was any fresh information or material so as to initiate proceedings of re-assessment u/s 143(3) and as such the whole basis of initiation of proceedings was illegal and without jurisdiction. It was also argued that Assessing Officer had recorded satisfaction on mechanical basis and without proper appreciation of facts. The Ld CIT(A) after going through the submissions of Ld AR deleted the addition made by the Assessing Officer by holding as under:- I have gone through the assessment order and written submissions of the appellant. I have also considered the case laws relied upon by the appellant. In this case the original assessment order was done u/s 143(3). Subsequently on the basis of survey conducted u/s 133A the case was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gupta has expired and his wife Smt. Manisha Gupta who is merely a house wife was not conversant with the relevant facts and legal position and as such there was no ground or basis to draw adverse inference merely on the basis that surrender was not retracted. During the course of assessment proceedings on 23.12.2010 a reconciliation statement of the capital account along with the death certificate of the appellant was filed before the Assessing Officer. Supporting documents related to reconciliation were filed before the Assessing Officer which he did not consider. His order is merely based on the statement recording during the course of survey which is not supported by any material or evidence to that effect. The reconciliation stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enuine. 6. Aggrieved the revenue has filed appeal before this Tribunal. 7. At the outset, the Ld DR submitted that there was no retraction of statement after recording of statement during search and in this respect our attention was invited to specific question posed by the Assessing Officer and incorporated in the assessment order. In view of the above, the Ld DR submitted that assessee had clearly surrendered the amount as unexplained income and therefore there was no justification by the Ld CIT(A) in deleting the same. 8. The Ld AR, on the other hand, argued that original assessment was completed u/s 143(3) and assessment was completed before the date of survey and therefore all facts were before Assessing Officer. In this res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age 27 of the paper book. Similarly, the details of personal loan raised from various banks amounting to Rs..30,46,949/- are placed on paper book pages 20 to 22. The assessee had also credited to his capital account amounts due to creditors M/s Fair Deal Corporation and M/s Super Sales India and further had reversed these amounts by debit to capital account and credit to the respective accounts of the creditors on 31.3.2007. The necessary evidence making these credits in the creditor s accounts is available in paper book pages 47 onwards. Therefore, we observe that assessee had artificially increased its capital probably to procure more loans from various banks. The assessee might have done this exercise just to obtain more loans and to com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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