2007 (1) TMI 219

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....ts and wrongly placing reliance on the judgment of Hon'ble Punjab & Haryana High Court in the case of Vipan Khanna vs. CIT (2002) 175 CTR (P&H) 335 : (2002) 255 ITR 220 (P&H), ignoring the decision of Hon'ble Supreme Court in the case of CIT vs. Sun Engineering Works (P) Ltd. (1992) 107 CTR (SC) 209 : (1992) 198 ITR 297 (SC) and in V. Jaganmohan Rao vs. CIT (1970) 75 ITR 373 (SC). 2. Heard and considered the arguments advanced by the parties in view of the orders of the lower authorities and the decisions relied upon by them. 3. Ground No. 1: 3.1 The assessee had filed return of income for asst. yr. 1999-2000 on 11th Oct., 1999 declaring total income at Rs. 60,780. The return was processed under s. 143(1) on 25th Jan., 2000. For as....

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....replied only under great duress and tension. In the process, the assessee lost his balance of mind. The statements, thus, recorded were under the duress and cannot be made out of free and fair will under the said circumstances. The learned CIT(A) observed further that the flow of statement shows that prior to question No. 28, wherein alleged disclosure of on money has been made, there is no reference to any alleged payment by the assessee in connection with the said property. There is no detail whatsoever available in the statement itself that how the alleged on money of Rs. 1,00,000 was paid by the assessee. The learned CIT(A) has supported his findings with the decisions in the cases of Pullangode Rubber Produce Co. Ltd. VS. State of Kera....

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....the Act was accordingly made. The AO in this assessment also made addition on account of s. 68, trading addition and addition towards low household withdrawals. The learned CIT(A), referring decision of Jaipur Bench of the Tribunal in the case of Gyarsi Lal Gupta & Sons vs. ITO (2005) 95 TTJ (Jp) 386, based on the decision of Hon'ble Punjab & Haryana High Court in the case of Vipan Khanna vs. CIT (2002) 175 CTR (P&H) 335 : (2002) 255 ITR 220 (P&H), has deleted the addition with this observation that the action of the AO travelling beyond the reasons recorded for which reopening of the assessment under s. 147 cannot be held justified, especially when the AO had not brought on record any reason to show that the impugned addition was otherwise....