TMI Blog2021 (7) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessee. We set aside the order of the lower authorities on the issue in dispute and delete the addition in the hands of the assessee. The grounds of the appeal of the assessee are accordingly allowed. - ITA No.2963/Del/2017 - - - Dated:- 16-7-2021 - Shri O.P. Kant, Accountant Member And Shri Kuldip Singh, Judicial Member For the Appellant : Ms. Rano Jain, Adv., Ms. Mansi Jain, CA For the Respondent : Sh. H.K. Choudhary, CIT (DR) ORDER PER O.P. KANT, AM: This Appeal by the assessee is directed against order dated 31/03/2017 passed by the learned Commissioner of Income Tax (Appeals)-IV, Kanpur [in short the Ld. CIT(A) ] for assessment year 2013-14 raising following grounds: 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the impugned assessment order and that too without assuming jurisdiction as per law. 2. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of ₹ 7,98,880/- on account of difference between the disclosure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of M/s Inspiration . On reconciliation, cash of ₹ 6 lakh was declared in the hands of the assessee and amount of ₹ 86,01,120/- was declared in the hands of M/s Inspiration . It was further submitted that the Assessing Officer in the case of M/s Inspiration examined all the seized documents and after verification, admitted the undisclosed income of ₹ 86,01,120/- declared by the assessee. The written submission of the assessee were forwarded by the Ld. CIT(A) to the Assessing Officer, who in his remand report dated 17/10/2016 submitted that in view of the various seized documents undisclosed income of M/s Inspiration should be enhanced by ₹ 62,05,880/-. On this remand report, the assessee submitted a rejoinder dated 04/02/2017, wherein the assessee explained as how the seized documents have been reconciled with the books of accounts and net undisclosed income of ₹ 86,01,120/- has been worked out in the case of M/s Inspiration . The said rejoinder has been reproduced by the Learned CIT(A) in the impugned order on page 12 to 17. After considering submission on both side i.e. the assessee and the Assessing Officer, the Ld. CIT(A) upheld the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Before us, the parties appeared through Video Conferencing facility. The assessee filed a paper-book containing pages 1 to 72. The learned Departmental Representative (DR) also filed a paperbook containing case laws. 4. The learned Counsel of the assessee referred to statement of assessee under section 132(4) of the Act, available on page 5-10 of the paper-book. She submitted that in response to question No. 18, surrender was made to cooperate with the Department and by peace of mind and there was as such no basis for the figure of ₹ 1 crore and it was just estimation. She further submitted that later on, while filing return of income, the figures were tallied and it came to the notice that the amount of undisclosed income was of ₹ 92,01,210/- and accordingly amount of ₹ 86,01,120/-was declared in the case of M/s. Inspiration' and ₹ 6 lakh in the case of the assessee. She further referred to paper-book pages 24-26, which are copies of seized documents. The Learned Counsel submitted that those documents relates to M/s. Inspiration and peak of receipt or credit has been worked out to ₹ 86,01,120/-, which has already been declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterial on record. In the case, the assessee surrendered undisclosed income of ₹ 1 crore in statement under section 132(4) of the Act. For ready reference, a typed copy of relevant part of the said statement is reproduced as under: 6.1 It is evident from the above that the surrender was on the basis of rough estimates of the cash and other documents seized. No calculation of the document-wise or item-wise surrender amount has been provided in the statement. Before us, the Learned Counsel of the assessee has submitted that cash found has been offered as undisclosed income in the hands of the assessee and whatever amount reflected in seized document, which were pertain to M/s. Inspiration , has been worked out to ₹ 86,01,120/- and declared in the hands of M/s. Inspiration . We find that the assessee has worked out the undisclosed income on the basis of the seized material, which has not been disputed by the Assessing Officer of M/s Inspiration. The assessee has been able to point out the mistake or error in the disclosure amount based on the seized document and, therefore, it is not a retraction and rather it is honouring of the statement. If any error ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his earlier statement made on 10-11.11.2005 and 21.11.2005. (Emphasis supplied externally) 6.2 The Hon ble Delhi High Court has also relied on the decision of Pullangode Rubber Produce Co. Ltd. (supra) to highlight that it was open to the person who made the statement to show that it was incorrect. The relevant para of the decision of the Hon ble Delhi High Court is reproduced as under: 12. The learned counsel for the appellant/assessee also referred to the Supreme Court decision in the case of Pullangode Rubber Products Co. Ltd. Vs. State of Kerala: (1973) 91 ITR 18 SC for the proposition that an admission is an extremely important piece of evidence but it cannot be said that it is conclusive. It was contended that it was open to the person who made the statement to show that it was incorrect. There cannot be any doubt about this position in law, but, in the present case the appellant/assessee has not produced any material to show that the admissions made by him were incorrect. The statements recorded u/s 132 (4) of the said Act are clearly relevant and admissible and they can be used as evidence. In fact, once there is a clear admission, voluntarily made, on t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
