2019 (1) TMI 1139

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the following substantial questions of law : "i. Whether the Appellate Tribunal is correct in law in sustaining the assessment of sundry creditors'/trade creditors' balances as deemed income in the hands of the appellant for the assessment year 2009-10 within the scope of Section 41(1) of the Act on the mis-construction of Explanation (1) below the said Section ? And ii. Whether the Appellate Tribunal was correct in law in sustaining the assessment of sundry creditors'/trade creditors' balances as deemed income overlooking the fact of the enquiry conducted by the respondent in the subsequent assessment year 2010-11, which confirmed the settlement of their accounts in the earlier assessment years as well as confirmed the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....also an affidavit stated to have been signed by the assessee, his brother one Mr.K.Gokul and his father one Mr.T.P.Kathirvel. 7. As against the said assessment order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals)-1, Coimbatore [for short, the CIT(A)]. The legal issue raised by the assessee before the CIT(A) was that the addition made on the basis of the statement recorded during the survey under Section 133A of the Act did not empower the Income Tax Officer to examine any person on oath and that therefore, such a statement had no evidentiary value and any admission made during the survey, could not, by itself, be made the basis for addition. In this regard, the circular of the Central Board of Direct Taxes da....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ave carefully considered the submissions made on either side. 11. It is important to note that during the pendency of the proceedings before the Tribunal, the assessment for the year 2010-11 was taken up by the Assessing Officer and the very same issue was taken up for consideration. The assessee produced the names of those creditors and an enquiry was conducted. The officers of the Department were directed to investigate into the matter after bringing on record the list of all the sundry creditors, the statements given and the no due certificates produced. Yet, the Assessing Officer made a protective assessment vide order dated 27.3.2013. This order is now the subject matter of appeal before the CIT(A). 12. However, the mistake committe....