TaxTMI 
TaxTMI 
2014 (8) TMI 1110
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....09 on 30.09.2008 declaring total income of Rs. 9,38,203. A survey operation u/s. 133A of Income-tax Act, 1961 was conducted on 25.08.2008 and during the survey certain documents were impounded. The assessee has admitted to an addition income of Rs. 15 lakhs during the survey but did not disclose that amount in the return of income. The AO made the following additions by giving reasons as below: "During the course of survey proceedings the assessee admitted an additional Income of Rs. 15,00,000/-. As seen from the computation filed, the assessee has not admitted additional income declared during the course of survey proceedings u/s 133A. The assessee was issued a show cause letter on 8-12-2010 to add to the income returned, the addi....
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....abourers. 5. The learned AR also argued that in case of material payments also the payments were made on site for purchase of steel and metal and are accounted under that head. However, the payments are made to different vendors and also against different bills and loads delivered at the site. 6. The second issue as found by the Assessing Officer is that no tax was deducted at source on the amount of Rs. 2,44,163 and disallowed the same u/s. 40(a)(ia) and added to the income returned. 7. On further appeal, the learned CIT(A) held that there is a clear violation of the provisions of both s. 40A(3) and s. 40(a)(ia) and the assessee has not been able to controvert any of the discrepancies pointed out by the Assessing Officer. 8. Th....
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....e differences in actual sale considerations and registered sale considerations and it does not include the statutory provisions on which the additions made u/s. 40A(3) and 40(a)(ia). 12. The AO has observed that during the course of survey proceedings the assessee had admitted an additional income of Rs. 15,00,000. However, as seen from the computation filed, the assessee had not admitted additional income declared during the course of survey proceedings u/s. 133A. The assessee vide its letter dt. 15.12.2010 submitted that at the time of survey on 28.5.2010 the assessee had not filed its Income Tax return and also not reported any income. Therefore, the income offered at the time of survey should be treated as part of the business income....
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....ine any persons on oath. Hence, any sue) statement made in the course of survey has no evidentiary value and any admission made during such statement cannot by itself be made the basis of addition. This view is supported by the instructions given by the CBDT issued on 10.3.2003 which has been extracted in the High Court's decision. In that CBDT had laid down that confession obtained during the course of search and seizure and survey operation do not serve any useful purpose. The Assessing officer should, therefore, collect evidence which leads to information on what has not been disclosed or is not likely to be disclosed before the Income Tax Department. Similarly, while recording statement during the course of search and seizure operat....
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....e and that, therefore, no further disallowance under section 40A(3) could be made. This view finds support from the judgement of Allahabad High Court in the case of CIT v. Banawarilal Bansidhar (1998) 229 ITR 229 (All) and recent judgement of Madhya Pradesh High Court in the case of CIT v. Purshottam Lal Tamrakar [2004] 270 ITR 314 (MP). 17. The AR also relied on the judgement AP High Court in the case of lndwell Constructions v. CIT (1998) 232 ITR 776 (AP) wherein It has been clearly held that where the books of account have been rejected, the revenue cannot rely on the same books of account for addition of an exact amount of expenditure in the P&L account. It was also held in that case that when an estimate is made, it is in substituti....