TMI Blog2017 (12) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... as per advance tax. Therefore, it was considered a reduction in the profit of ₹ 20 crores. It is not in dispute that ultimately the assessee- company declared taxable income of ₹ 160,14,24,547. The A.O. in the computation of income has taken the same figure. Therefore, even if the seized document is considered adverse in nature against the assessee-company, assessee-company has already declared more taxable income in the return so filed after the search. Therefore, there is no case of reduction of the profit in the facts and circumstances of the case. Further, A.O. has not brought any evidence on record that as against the declared income at ₹ 167 crores, there is any manipulation or reduction of the profit in the boo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this annexure is related with the assessee-company, wherein it was mentioned that the assessee-company made adjustment to reduce the excess profit of ₹ 20 crores. Therefore, assessee- company was required to explain the same in view of statement of Shri Rudra Sen Sindhu for adjustment in taxable profit to the tune of ₹ 20 crores in the assessment year under appeal in view of the exceptional profits of the year. It is stated in the statement that adjustment of taxable profit of ₹ 20 crores which was not likely to be disclosed, is being offered as additional income in the hands of the assessee-company in the assessment year under appeal. It was submitted before A.O. that the paper contains note dated 5th April, 2012, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. CIT(A). The written submissions of the assessee- company are reproduced in the appellate order in which the assessee-company reiterated the submissions made before A.O. and it was further submitted that allegation of reduction of profit is not correct. The assessee-company has shown the income correctly. The document was never acted upon. It was a mere estimate. The Ld. CIT(A) after considering the submissions of the assessee-company and material on record, found that there is nothing on record to show any transaction reducing the profit by ₹ 20 crores. The assessee-company has already filed return of income showing income of ₹ 167 crores. Therefore, the addition of ₹ 20 crores was deleted. 4. The Revenue is in ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 167 crore which is much higher. Therefore, no addition is required in the matter. He has submitted that no evidence of manipulation in the books of account of the assessee-company was found during the course of search. It is not a case of reduction of the profit and only adhoc addition was made which have been correctly deleted by the Ld. CIT(A). 7. We have considered the rival contentions and do not find any merit in the departmental appeal. Though the document in question was not recovered from the possession of the assessee-company, any how, it would not give rise to the addition in question. The A.O. heavily relied upon the seized document copy of which is filed at page-358 of the paper book as well as reproduced in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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