TaxTMI 
TaxTMI 
2012 (11) TMI 550
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....rcumstances of the case the Ld.CIT(A) is rght in deleting the addition of Rs. 14.40 Lacs made by the Assessing Officer on account of unexplained accretion in the capital account, by admitting the fresh details & evidences furnished during the course of appellate proceedings which were not furnished before the Assessing Officer during the Assessment Proceedings without recording the reasons for admitting the same ? 3. It is prayed that the order of Ld. CIT(A) be set aside and that of the AO may be restored. 4. The appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed off." 3. In ITA No. 697/Chd/2011, the assessee has raised the following Grounds of Appeal : "1. The learned commissioner of income tax (Appeals) has erred in confirming the addition of Rs.9.00 lacs on account of credit of Rs.5.00 lacs from M/s Global Med. Surg. (P) Ltd. and Rs.4.00 lacs from M/s Phythochem Healthcare Pharmaceuticals, Panchkula without any basis or facts on record. 2 The learned Commissioner of Income Tax (Appeals) has also erred in law as well as facts in rejecting the request of the appellant for admission of additional evidence. 3. The learne....
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....8 of the Act which is challenged vide ground no. 1 of appeal. 1.06 In the written submissions, the counsel of the appellant explained the source of credit in the capital account of the appellant maintained with M/s Oscar Remedies, Kala Amb, as is noted from the extracts of the written submissions w.r.t this ground of appeal, reproduced above and enclosed the relevant copies of account from where funds were transferred. The relevant copies of accounts from the books of M/s Oscar Remedies, Oscar Remedies Pvt. Ltd. and of bank account are examined, from which movement of funds are verifiable and hence addition of Rs. 14.40 lakh made by the AO by holding the accretion in the capital account of the appellant maintained with M/s Oscar Remedies, Kala Amb, unexplained, can not be sustained and hence is, hereby, deleted." 8. Findings of the CIT(A) clearly demonstrate that requisite evidences were filed by the assessee in the form of copies of account and the movement of funds. The ld. CIT(A) has examined the copies of account and relevant bank accounts and deleted the addition. In view of this, we do not find any infirmity in the findings of the CIT(A) and, hence, the same are upheld. Th....
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....was also recorded in the course of assessment proceedings by the AO, in which he confirmed the transaction. In view of this, transaction was treated as explained. However, CIT(A) upheld the addition of Rs.9 lacs in view of the findings recorded in para 2.16 and 2.17. 15. The relevant findings are reproduced hereunder : "2.16 From the above it is noted that the letter is undated and even without complete PAN No. A copy of this letter is made part of this order as Annexure 'A' From this letter genuineness of this credit can not be said to be established since from this letter, even the identity of the creditor can not be said to be established in view of the fact that the creditor did not even know its PAN number, what to speak of establishing the capacity of the creditor and genuineness of the transaction. It is, therefore, held that the appellant failed to establish the genuineness of this credit and hence addition of Rs.4 Lakh made by the AO is, hereby, confirmed. 2.17 similar is the position in the case of loan of Rs.5 Lakh from M/s Global Medical Surgical Pvt. Ltd. The appellant filed Xerox copy of confirmation of account as appeared in his books. From this, neither th....
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..... 'AR' placed reliance on the decision reported in Kewal Chand Nem Chand Mehta V CIT 67 ITR 804. The case relied upon by the assessee and the ratio laid down therein, is not applicable to the facts of the present case being different and distinguishable viz-a-vis the facts of the case relied upon by the assessee. 20. Ld. 'AR' further placed reliance on the decision in the case of CIT V Radha Developers India Ltd. & another (2010) 329 ITR 1 (Guj). It is a case of search & seizure assessment wherein deduction for expenses was held admissible, in respect of unexplained investment. The facts of the present case and the case law relied upon by the assessee are different and distinguishable and, hence, this decision is not applicable to the present case. 21. Ld. 'AR' further referred to the decision of Fakir Mohd Haji Hasan V CIT 247 ITR 290 (Guj ) wherein it has been clearly held that no deduction is allowable in respect of deemed income added u/s 69 to 69C of the Act. This decision was also relied upon by the revenue and we are of the opinion that case of the revenue is covered by the decision and not that of the assessee. 22. Ld. 'DR', on the other hand, placed reliance on the orde....
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.... being maintained. Ques. 20 I am showing you a slip pad of Neelgagan in which few entries pertaining to Ka/a Amb Ale appears. Please explain the same. As per page I to 5 the total of amounts appearing in these pages comes to Rs.30 Lacs. Explain these entries and sources thereof. Ans. This amount was used by me for construction of building at 0Kala Amb. This is my individual income and the same will be added in my income from my salary and interest for the F.Y. 2005-06. This surrender is made to buy mental peace and is made voluntarily, without any pressure and is subject to no penal action. Separate letter for surrender is being submitted." 3.05 In view of this statement, the appellant filed a letter also to the Addl. CIT Yamuna Nagar, wherein he inter alia, stated as under: "During the course of survey operation at the premises of Oscar Remedies (P) Ltd. certain documents relating to construction at Kala Amb factory premises have been found. I hereby, offer to surrender a sum of Rs.30,00,000/- as additional income for Financial Year 2005-06 as my income. The amount was used for construction of factory building. This surrender has been made voluntarily subject to no penal actio....
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...."the illegality in the method, manner or initiation of a search does not necessarily mean that anything seized during the search has to be returned. After all, in the course of a search, things or documents are required to be seized and such things and documents when seized may furnish evidence. Illegality of the search does not vitiate the evidence collected during such illegal search. The only requirement is that the Court or the authority, before which such material or evidence seized during the search shown to be illegal is placed, has to be cautious and circumspect in dealing with such evidence or material." 3.09 Thus, in the light of authoritative preposition of law laid down by Hon'ble Supreme court, applying the same to the facts of the case, it has to be held that the information available from such statement i.e. the factual position stated by the Deponent, if found to be broadly corroborated by other available material, can always be used in the income tax proceedings against the Deponent. The assessee/appellant cannot be permitted to raise the plea about the legal validity of such statement. 3.10 Further, it has been judicially held that assessment based on admission ....