Tribunal Overturns Lower Decisions: Orders Removal of Additional Income from Property Sale Already Declared and Taxed.

The Tribunal allowed the appeal of the assessee, overturning the decisions of the lower authorities. It directed the assessing officer to remove the additional income addition related to on-money received during the property sale. The Tribunal found that the amount had already been declared, taxed, and credited to the profit and loss account by the assessee during the survey. The delayed retraction of the assessee's statement and lack of cross-examination were noted, but the Tribunal emphasized that the additional income addition was impermissible since the income had already been accounted for.

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Issues Involved:
The judgment involves issues related to the acceptance of on-money by the assessee, retraction of statement, assessment based on impounded material, lower sale consideration, and the addition of income offered during the survey.

Acceptance of On-Money and Retraction of Statement:
The assessee initially admitted to receiving on-money in a sworn statement but later retracted the statement. The assessment was completed by adding the amount to the total income based on the impounded MOU and the initial statement. The lower authorities upheld the addition due to the delayed retraction of the statement after seven months, emphasizing the value of statements given on oath as important evidence. The sale consideration being lower than the purchase price raised doubts about the credibility of the transaction. The Tribunal observed that the retraction made after seven months held no value, and without supporting material, the retraction was deemed unacceptable.

Assessment Based on Impounded Material:
The impounded material found during the search operation was crucial in the assessment process. The Tribunal noted that similar incriminating material was discovered in the premises of another entity during a separate search operation, further strengthening the case against the assessee. The failure of the assessee to provide evidence against the statements made by others, coupled with the lack of cross-examination of relevant individuals, worked against the assessee's case.

Lower Sale Consideration and Addition of Income:
The Tribunal analyzed the financial statements and confirmed that the additional income offered during the survey had already been declared and taxed by the assessee. Despite this, the assessing officer made a separate addition to the income, which was deemed impermissible under the law. The Tribunal directed the assessing officer to delete the additional addition made towards on-money received during the sale of property, as the amount had already been declared, taxed, and credited to the profit and loss account by the assessee.

In conclusion, the Tribunal allowed the appeal of the assessee, setting aside the orders of the lower authorities and directing the assessing officer to delete the additional addition made towards on-money received during the sale of property, as the amount had already been declared, taxed, and credited by the assessee during the survey process.

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