TaxTMI 
TaxTMI 
2019 (5) TMI 1305
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....peal, the assessee has challenged the addition of Rs. 20 lacs in respect of alleged undisclosed investment in furniture and fixture. 2. The brief facts and background qua the addition of Rs. 20 lacs are that, a survey u/s.133A was conducted on 31.01.2002 at the business premises of the assessee, during the course of which the assessee has surrendered an amount of Rs. 1 crore in his statement which also included sum of Rs. 20 lacs on account of investment in furniture and equipments in showroom. Later on, the assessee retracted from the said surrender that no such investment was made and no material as such found. However, the ld. Assessing Officer vide his order dated 27.01.2004 has made the addition of Rs. 20 lacs on the ground that thi....
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....which is wrongly deleted by the ITAT. Mr. Sethi has no objection if this aspect is also referred to the AO. Based on the aforesaid statement of Mr. Sethi, we modify the order of the Tribunal to the aforesaid extent and direct that the A0 shall consider afresh aspect of the purported investment made on showroom furnishing and equipment with alleged expenditure of Rs. 20 lacs incurred thereupon. Needless to mention, it would be open to the assessee to question the proposed addition and argue that there is no basis for making such an addition." [Emphasis in bold is ours] 3. In the set-aside proceedings, the ld. Assessing Officer has again referred to the surrender offered by the assessee during the course of survey. The re....
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....regard to the furniture and equipment, etc. However, the ld. CIT (A) rejected the assessee's contention. First of all, he agreed with the contention of the assessee that addition cannot be sustained solely on the basis of statement made by the assessee at the time of survey operation. He has also observed that Assessing Officer has not brought any material facts in the assessment order, which were collected during the course of original assessment proceedings. Here in this case, assessee had purchased property at 1/5, Tilak Nagar, New Delhi which were demolished and thereafter construction from basement to 2nd floor was made in the financial years 1998-99 to 2001- 02. The Valuation Officer of the Department in his report dated 13.08.2003 ha....
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.... basis of statement given by the assessee during the course of survey. Such a surrender made by the Assessee during the course of survey has been negated by the Tribunal in the first round of proceedings after detail discussion. In the appeal filed by the department before Hon'ble High Court, the matter has been restored back solely to examine the issue on merits. He further pointed out that the assessee in its balance sheet as on 31.03.2002 has already reflected addition of assets of Rs. 2,73,445/- which includes furniture and fixtures, camera, colour TV and refrigerator, water filter, security system, etc. Ld. CIT (A) solely based on presumption that there is no addition in respect of furniture and fixture, air conditioner etc., which is ....
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....aterial on record and also no inquiry was made by the Assessing Officer to justify such an addition. The Hon'ble High Court while remanding the issue back to the file of the Assessing Officer has categorically observed that counsel for the respondent-assessee has no objection if this issue is also referred to the Assessing Officer to be decided afresh and it would be open for the assessee to question the proposed addition and argue that there is no basis for making such an addition. Thus, when the assessee before the authorities below have stated that there is no basis for making such an addition, then again relying upon the same statement made during the course of survey cannot justify the addition. The ld. CIT (A) however has tried to....
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....s in the form of equipments. If assessee has not made any addition in this year in fixture and furniture, that does not mean that assessee must have made any investment outside the books, especially, when there is no material to support the same. There is no actual verification that assessee has installed any air conditioner during that period, and therefore, to presume that the assessee must have made certain investment in such equipments which is required in jeweler's shop cannot be the basis for addition. Once, the basis of surrender and letter written by the Assessing Officer stands negated by the Tribunal later on by the High Court in the sense that the Hon'ble High Court has directed the Assessing Officer to consider the issue of ....