TaxTMI 
TaxTMI 
2014 (1) TMI 1489
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....follows: "5.1. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in reversing the order of the learned CIT (Appeals) and restoring the addition of Rs.20 lakhs 5.2. Whether on the facts and circumstances of the case, the Hon'ble ITAT was justified in holding that the appellant company could not retract from its admission before the learned CIT (Appeals), who is also a departmental authority and whose powers are co- eval with those of the assessing officer 5.3. Whether the Hon'ble ITAT the ultimate fact finding body, was justified in refusing to look into the facts relating to the expenditures involved in the so called defective vouchers listed by the assessing officer 5.4. Whether there is any bas....
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....of that the statement of the Managing Director had not been furnished to it" At the first instance, from a reading of the aforesaid suggested questions of law, we are of the view that those questions are not the questions of law rather argument in the form of question. Therefore, we do not want to look into those questions. However, when the matter has come up for hearing, it is the duty of the Court to formulate the substantial question of law, if the Court decided to admit the appeal for hearing. The relevant facts are as follows: The Assessing Officer has made an assessment order on the basis of the voluntary statement made by the Managing Director of the appellant disclosing of income of Rs.20 lakhs. The said statement, which was ....
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....d in the grounds of appeal, that the aforesaid admission was recorded under mistaken belief of fact and law. Taking note of this argument, perhaps and without verifying whether such ground has been made out or not, the Commissioner of Income Tax (Appeals) observed as follows: "Before going into the legal intricacy whether income offered during the course of survey can be agitated before the appeal proceedings or not, I want to state that an addition made by the AO should stand on its own legs irrespective of the fact whether it is accepted or not accepted by the assessee. I agree that in this case, the MD of the appellant-company had offered a sum of Rs.20 lakhs at the time of survey. It is also a fact that he has not disputed the same d....
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....fore the Court of law or Tribunal, which then can consider the same. It is settled position of law that admission is a very important piece of evidence, unless it is explained or retracted. Here the assessee has not made any attempt to explain before the Commissioner of Income Tax (Appeals) suggesting not to accept the same. Here instead of retracting the assessee called upon to act upon the same to pass assessment order and accordingly it was done and the tax was duly paid. We fail to understand why challenge should be made at a later stage. The learned counsel thereafter argues that the admission cannot be looked into under the law, as it is a material collected during the period of survey and this is not a valid piece of evidence. We thi....