TaxTMI 
TaxTMI 
2012 (8) TMI 797
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....ndertakings in M.P. The assessee filed his return showing income of Rs. 58,34,290/- on 29.10.2007 and revised return on 09.03.2009 showing income of Rs. 95,47,610/-. A survey u/s 133A was conducted in the assessee's business premises 203, Zone-II, M.P.Nagar, Bhopal, on 20.01.2009. During the course of survey various incriminating documents were found and impounded. During the course of survey statement of assessee was taken in which it was admitted by him that considering the discrepancies in the books of account and various loose papers and vouchers, 10% of net profit for assessment year 2007-08 is accepted by him. 3. In the order framed u/s 143(3), the Assessing Officer observed that during the course of assessment proceedings various in....
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.... various decisions in support of the proposition that statement recorded during survey does not constitute requisite evidence. As per ld. Authorized Representative, even after estimating profit at 10 %, the statutory deduction on account of depreciation is to be allowed in terms of CBDT circular dated 1st February, 1972. 6. On the other hand, the ld. CIT DR relied on the findings recorded by the lower authorities for estimating profit at 10% which was based on the statement recorded during course of survey after considering the incriminating documents found at assessee's business premises. 7. We have considered the rival submissions and have gone through the orders of the authorities below. We had also deliberated on the various case laws....
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....r the statement recorded during the survey was under any coercion or duress and whether the facts admitted by the appellant were supported by any material documents or such statements was simply recorded without any basis. On perusal of statement of Shri Rajendra Kumar Garg i.e. appellant, it is noticed that as per his answer to Q.No.2 he admitted that no vouchers and muster rolls were maintained and that all the accounts are maintained in Kacha i.e. rough manner and at the end of the financial year, such incomplete records i.e. kacha records are handed over to his counsel i.e. CA. In answer to Q.No.3, he very specifically admitted that the return of income was filed simply on the basis of kacha bills and on estimate basis and while filing ....
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....ed on the vital incriminating document on which he has given very specific replies. In the last, the appellant has admitted to have read the whole statement and that such statement was given in complete conscious without any duress. It also appears that the counsel of the appellant was also available on the premises when the statement was recorded as the AR has further stated that post dated cheques were filled in by the appellant. These facts will indicate that prima facie it is not a case of coercion or duress. Rather it appears that the retraction of the statement by the appellant was simply an after thought to avoid the consequence of payment of taxes arising on account of such incriminating papers. It may also be mentioned that the sta....
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.... IT Act is to be examined keeping in view the findings of the survey as also the facts admitted by the appellant. During the survey operations, on the basis of incriminating documents the appellant himself admitted that the accounts of contract business were maintained in a kaccha manner i.e. rough manner and that such rough details were handed over to the counsel at the end of the financial year for preparation of Income Tax Return. Admittedly no muster roles i.e. detail of labour expenses and other bills vouchers were maintained (refer answer 2 of statement). The appellant also admitted illegal payments of Rs.47.60 lacs on the basis of impounded documents, inventoried as LPI-8 page 164 and it was also admitted that such illegal payments w....
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....ntained. It is not merely a case of assessee's acceptance to apply 10 % profit rate or rejection of books of account by the Assessing Officer and application of profit rate accepted by the assessee but here precisely the amount found to be mentioned in the incriminating documents, which, if separately added even after application of profit rate of 8 %, as suggested by the ld. Authorized Representative , the over-all income will be worked out much more. In reply to Question No.10, during the course of survey, the assessee had not only accepted 10% net profit but also computed profit thereon and surrendered amounting to Rs. 291 lakhs and additional income of Rs. 1 crore and also agreed to pay tax thereon. Thus, we do not find any infirmity in....