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TMI Blog2014 (8) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... at on the facts and circumstances of the case and in law the Ld. CIT(A) erred in relying upon various case laws which are against the revenue, and not considering the case laws in favour of revenue." 3. Briefly stated facts leading to the above issue are that a search and seizure operation was conducted on Shyam Steel & Power group of cases on 26.03.2010 u/s. 132 of the Act. A consequential search was also conducted in the bank Account No.504011039472 maintained with ING Vaishya Bank Ltd., H. B. Sarani Branch, Kolkata and Account No. 301601010025105 maintained with Union Bank of India, Indian Exchange Place Building, Kolkata in the name of Manomay Distributors Pvt. Ltd. and Omni Trexim Pvt. Ltd. respectively. The assessee Shri Vivekanand Verma was one of the directors in these companies. During the course of search on the bank account of the Companies where the assessee is a director, the assessee submitted a letter dated 06.05.2010 before DDIT, Investigation Unit 1(4), Kolkata whereby he disclosed additional income of Rs. 1 cr. Accordingly, AO initiated proceedings u/s. 153C of the Act. During the year under consideration i.e. AY 2010-11, the AO made addition of this Rs. 1 cr. an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Tax Act, 1961". In the said letter, it was stated by the appellant that he is associated with M/s. Manomay Distributors Pvt. Ltd. and M/s. Omni Trexim Pvt. Ltd. as Director. He had earned commission income on various financial transactions during the Financial Year 2009-10 which is outside the regular books of account. Therefore, he made disclosure of Rs. 1 crore for the assessment year 2010-11. In the said letter appellant also stated that on the bank accounts of the above named companies, prohibitory order u/s. 132(3) has been placed and the balance lying with the said bank accounts may be used for payment of tax on his additional income. However, in the return of income filed by the appellant for assessment year 2010-11, he did not disclose the additional income of Rs. 1 crore as admitted ìn the letter dated 06.05.2010. Therefore, in the course of assessment proceedings, the AO asked to explain as to why he did not consider the disclosure made u/s. 132(4) in the computation of income submitted along with the return of income. The appellant was also show caused to explain as to why unaccounted income, already disclosed by him amounting to Rs. 1 cr should not be added to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t even a síngle piece of incriminating evidence/document has been discussed by the AO which may suggest that the appellant had earned undisclosed income or which may support and corroborate the disclosure made by the appellant. I find no substance in the statement of AO that by making disclosure of undisclosed income, the appellant induced the search party not to proceed with collection of evidences. In fact, it is the first and foremost duty of the search party to gather the evidences suggesting the undisclosed income/investment of an assessee. The search party cannot stop its proceeding of collecting evidences if the disclosure is made by an assessee. It is observed that neither the search party nor the AO has brought any material on record to establish that the appellant had earned the undisclosed income of Rs. 1 crore. In the course of appellate proceedings, the appellant filed copies of assessment orders in the case of M/s. Manomay Distributors Pvt. Ltd. and M/s. Omni Trexim Pvt. Ltd. for A.Y. 2010-11 dated 28.12.2011 passed by the same AO who passed the order in the case of appellant. In the case of both the companies, the bank balances were accepted by the AO as duly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s follows : "Instances have come to the notice of the Board where assessees have claimed that they have been forced to confess the undisclosed income during the course of the search and seizure and survey operations. Such confessions, if not based upon credible evidence, are later retracted by the concerned assessees while filing returns of income. In these circumstances, confessions during the course of search and seizure and survey operations do not serve any useful purpose. It is, therefore, advised that there should be focus and concentration on collection of evidence of income which leads to information on what has not been disclosed or is not likely to be disclosed before the Income-tax Department. Similarly, while recording statement during the course of search and seizure and survey operations no attempt should be made to obtain confessíon as to the undisclosed income. Any action on the contrary shall be viewed adversely. Further, in respect of pending assessment proceedings also, the Assessing Officers should rely upon the evidences/material gathered during the course of search/survey operations or thereafter while framing the relevant assessment orders." In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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