2009 (1) TMI 856

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....ey and the amount shown in the return of income Briefly stated the facts of the case are that a survey action u/s.133A was taken on the office premises of the assessee along with its two sister concerns on 15.1.2003. Inventory of stock and cash lying in the stock was prepared. The difference in the stock the case of the assessee was worked out at Rs. 21,14,416, being stock excess on physical verification Statement of Sh. Bharat Gala the partner of the firm was recorded, the relevant portion of which has been reproduced by the AO in the assessment order. Question numbers 36 to 38, which are' material for our purpose put up to the partner of the assessee firm at the time of survey along with their respective answers have been mentioned on....

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....8.85 lakhs, which was agreed by the assessee at the time of survey as additional income but not offered in the return as taxable. This addition came to be deleted in the first appeal. 4. We have heard the rival submissions and perused the relevant material on record. Both the sides have made submissions qua the acceptability or otherwise of the books of account maintained by the assessee as well as on the addition of Rs. 28.85 lakhs. 5. Insofar as the first point is concerned the learned A.R. has relied on certain decisions in support of the fact that if the quantitative record is not maintained in particular line of business, the same in itself would not warrant the rejection of books of account. He further submitted that the nature of t....

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....towards excess stock and Rs. 29 lakhs towards "any other discrepancy. To the extent of the excess stock found at the time of survey, the amount was promptly offered for taxation but the assessee retracted from his statement vide Its letter dated 24.3.2003, a copy of which is placed at page 89 of the paper book. It has been mentioned therein that the surrender was obtained forcefully by the survey team. Be that as it may, the crucial question before us is to decide as to whether the addition can be sustained simply on the basis of statement recorded at the time of survey. The Hon'ble Kerala High Court in Paul Mathew & Sons vs. CIT (2003) 263 ITR 101 has held that the statement recorded u/s.133A has no evidentiary value. The same view has....