TaxTMI 
TaxTMI 
2016 (9) TMI 711
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....missioner of Income Tax (Appeals) in upholding the additions made on creditors for the current year in respect of the creditors details found at the time of survey in the subsequent assessment year i.e., FY 2013-14, to arrive at a belief that the same modus operandi has been followed in the earlier year in generation of unaccounted cash is not warranted. 03. The Commissioner of Income Tax (Appeals) erred in upholding the disallowance by the learned Assessing officer that, despite the huge volume of transactions, the appellant would be able to give all the details called for in short notice. However, the additions based on the statements during the Survey in subsequent year cannot be the basis of addition on surmises. 04. T....
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....g figures against each collection agent as bogus creditor. The assessee has not explained how this is worked out or the names of the actual creditors were not filed. The Assessing Officer after going through the above statement assessed the overstated purchase price of the milk at Rs. 2/- per litre. In other words, the assessee purchased total milk worth Rs. 1,17,41,76,667/- and the increase in creditors works out to 5.61% of the purchases. In other words, according to the Assessing Officer, the assessee has inflated the purchase cost of milk at around 5% of the total purchase. Thus, he estimated the inflated purchases by the assessee at Rs. 5,87,08,833/- against which the assessee went in appeal before the CIT(A). The CIT....
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....s year ended on 31.3.2012. Further he submitted that there is a jurisdictional High Court judgment in the case of CIT vs S. Khader Khan Son, 300 ITR 157 wherein held that sec. 133A does not empower any income tax authority to examine any person on oath, hence, such statement has no evidentiary value and any admission made during such statement given by itself be made the basis for addition. He also submitted that the said judgment was also confirmed by the Supreme Court in 352 ITR 480. According to him when the survey conducted during the financial year 2011-12 cannot be relied upon for the purpose of assessment made The survey statement collected after the close of the assessment year could not be relied upon for the purpose of earlier ass....
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.... relied on the orders of the lower authorities. 6. We have considered the rival submissions and also perused the material on record. Admittedly, survey u/s 133A of the Act was carried out by the Department on 6.11.2013. The previous year relevant to the assessment year was ended on 31.3.2012. In other words, the relevant financial year for this assessment year is 2011-12. The survey conducted u/s 133A was not resulted in unearthing any evidence relating to inflation of purchase cost of milk for the relevant assessment year. Further, the Assessing Officer made estimation of inflated purchase on the reason that the assessee has not furnished the confirmation letters from the creditors. The assessee pleaded before the Assessing Officer that....