9911796707
TMI Blog2025 (5) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... ies and other transactions carried out by the assessee were found which were impounded. On the basis of the incriminating material, the assessee in his statement recorded in the course of survey admitted unaccounted business receipts of Rs. 1,17,05,820/- and receipt of on-money of Rs. 23,00,000/- on sale of his two old shops. Thus, the assessee admitted a total amount of Rs. 1,40,05,820/- as his undisclosed taxable income for the A.Y. 2014-15. However, this undisclosed income admitted by the assessee in the course of survey were not offered for tax in the income tax return filed by him. When enquired in the course of assessment, the assessee had submitted that the statement in the course of survey was recorded under duress and that the said statement was subsequently retracted. The Assessing Officer, however, was not convinced with the explanation of the assessee. He found that the statement was given vis-a-vis the impounded documents wherein the unrecorded incomes of the assessee were categorically recorded. Therefore, he made addition of Rs. 1,40,05,820/- on account of admitted unaccounted income. The assessment was completed under Section 143(3) of the Act on 08.12.2016 at a tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as made by the Assessing Officer. 7. We have heard the rival submissions. The addition of Rs. 1,40,05,820/- was made in this case on the basis of the documents found in the course of survey and the statement of the assessee recorded in the course of survey. It is, therefore, relevant to go through the statement of the assessee recorded during the survey and also examine the documentary evidences found in the course of survey. A copy of the statement of Shri Laxmandas Mohanlal Lakhvani recorded in the course of survey on 13.08.2013 has been brought on record. The addition of Rs. 1,40,05,820/- made on the basis of statement of the assessee given in the course of survey comprises of two parts: (i) Rs. 1,17,05,820/- on account of suppressed business income, and (ii) Rs. 23,00,000/- on account of on-money receipt on sale of two old shops. We will examine the correctness of these two additions considering the evidences found in the course of survey as well as the statement of the assessee. Undisclosed business income 7.1 In the course of survey, one loose paper file BF-1 was impounded. The assessee was required to explain certain pages of this document and the reply of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts of business as his income. It was explained that his highest turnover of business in the preceding three years was Rs. 3.17 crores only in A.Y. 2013-14 in which the net profit disclosed was @ 7.17%. If the income for part period of A.Y. 2014-15 was taken at Rs. 1,17,05,820/- as per statement given in the course of survey, then the turnover of the assessee would be an unimaginable figure. It was submitted that in the course of survey, the assessee was under huge mental pressure and had wrongly stated the figure of receipts as income. He further submitted that no evidence of corresponding turnover was found in the course of survey which would justify his unaccounted income of Rs. 1,17,05,820/- for the period of 5 months only. 7.3 The Assessing Officer, however, had rejected the explanation of the assessee considering the evidences found in the course of survey and the statement of the assessee. We have called for the evidences impounded during the course of survey and carefully examined the entries appearing therein. It is found that the impugned documents BF-1 has month-wise computer-generated sheets in which date-wise income is mentioned. The figure appearing in BF-1 is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that this amount was the turnover, relevant documents & evidences in support thereof may be called for and examined and thereafter the matter may be decided afresh. The assessee is directed to produce necessary evidences before the AO in support of his contention that the figure of Rs. 1,17,05,820/- was his turnover and not income. To this extent, the matter is set aside to the file of the JAO. On-money receipt on sale of property 7.4 In the course of statement recorded during survey, the assessee was required to explain the entries appearing at page nos.16 & 17 of the impounded documents BF- 2. The explanation of the assessee was as under: - "Q.11 Please explain Page 16 and 17 of BF-2. Ans. 11 There is details of the basement sale at page 16 of BF-2. I had sold the shop of this basement to Sh. Mukund for total Rs. 29.75 lakhs. In this page the price of the deed is Rs. 13.25 lakhs and Rs. 0.50 lakh that is regarding the deed of total Rs. 13.75 lakhs. In this, I have received cash of Rs. 16 lakhs. I declare it as the unaccounted income of my year F.Y. 2013-14 (Α.Υ. 2014-15). In the same way, in the year 2013-14, in one shop of Page 17, I had an unaccounted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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