TaxTMI 
TaxTMI 
2019 (2) TMI 1641
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....he assessee. During the course of search, certain documents were seized. A statement of the assessee was recorded in which the assessee admitted and surrendered income on behalf of self and others. The A.O. therefore made addition of Rs. 2,25,00,000/-. Against this, the assessee preferred an appeal before Ld. CIT(A), who after considering submissions deleted the addition. Now the revenue is in appeal. 3. Ld. D.R. vehemently argued that Ld. CIT(A) was not justified in deleting the additions. Ld. D.R. relied upon the decision of the Hon'ble Delhi High Court in the case of Hans Towers (P) Ltd. Vs. CIT-V (2015) 56 taxmann.com 67 (Delhi). 4. On the contrary, Ld. Counsel for the assessee supported the order of the Ld. CIT(A) deleting the addition and relied upon various case laws and he also reiterated the submissions as made in the written synopsis. 5. We have heard the rival submissions, perused the materials available on record and gone through the orders of the authorities below. The Ld. CIT(A) deleted the addition by observing as under: "7. The A.O. has placed his reliance on the decision of the Hon'ble High Court of Chattisgarh in ACIT Vs. Hukum Chand Jain....
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....n the basis of the statement. There has to be some material corroborating the contents of the statement. In the case in hand, revenue could not point out as what was the material before the A.O., which supported the contents of the statement. In the absence of such material, coupled with the fact that it is recorded by the Ld. CIT(A) that the assessee himself had surrendered a sum of Rs. 69,59,000/- and Rs. 75,00,000/- in A.Y. 2008-09 and 2009-10 respectively. The A.O. failed to co-relate the disclosures made in the statement with the incriminating material gathered during the search. Therefore, no inference is called for in the finding of the Ld. CIT(A) and is hereby affirmed. Ground raised by the revenue is dismissed. 7. In the result, the appeal filed by the revenue is dismissed. 8. Now we take up appeal of the assessee in ITA No.299/Ind/2017. The assessee has raised following grounds of appeal: 9. The assessee has taken a legal plea that the notice initiating the penalty is bad in law. Therefore, the proceedings initiating penalty are vitiated. Ld. Counsel for the assessee has drawn our attention to the notice. Notices are enclosed along with synopsis. For the sake of ....
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....that the statement to offer income is incorrect- Assessee has explained that the amount offered on the second day of the search was loans taken by him from relations who were already assessed on the said amount- Even otherwise, assessee's transactions relating to pawn broking pertained to earlier assessment years and had no relevance to the year under consideration- Thus, once the assessee had explained his statement as incorrect in the context of the material produced by him, the Tribunal was not justified in its conclusion that the statement made by the assessee clothed the assessment with legality-That apart, the case of the assessee also stands supported by Circular No. F.No. 286/2/2003-IT (Inv.), dt. 10th March, 2003 wherein CBDT has given categorical directions to the Departmental officers that undue emphasis should not be placed on the recorded statements-Therefore, CIT(A) was justified in accepting the assessee's case and deleting the addition of Rs. 4 lakhs." आयà¥à¤•à¥à¤¤ INCOME TAX OFFICER vs. VIJAY KUMAR KESAR (2010) 231 CTR (Chattisgarh) 165 (2010) 327 ITR 497: (2010) 36 DTR 13 Held: Income fro....
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.... whether such statement falls under Expln. to s. 132(2) and whether the Explanation has got any retrospective effect has become purely academic A plain reading of sub-s. (4) of s. 132 shows that the authorised officer during the course of raid is empowered to examine any person if he is found to be in possession or control of any undisclosed books of account, documents, money or other valuable articles or things, elicit information from such person with regard to such account books or money which are in his possession and can record a Statement to the effect. Under this provision, such statements can be used in icence in any subsequent proceeding initiated against such person under the Act. n 0.11 Document 3 d) आयकर Thus, question of examining any person by the authorised officer arises only when he found such person to be in possession of any undisclosed money or books of account. But, in this case, it is admitted by the Revenue that on the dates of search, the Department was not able to find any unaccounted money, unaccounted bullion nor any other valuable articles or things, nor any unaccounted documents ....
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....fidavit also 377furnished-AO did not consider the explanation on the ground that retraction was made after a delay of two months and made addition on the basis of statement under Document 4 9. s. 132(4)-Not justified in the facts and circumstances of the case-It is too much to give any credit to a statement recorded at midnight when a person may not be in a position to make any correct or conscious disclosure-Further, viewed in the light of evidence furnished along with affidavit, there was proper explanation in respect of all the items on which disclosure was sought to be made ruling out all reasons for making addition of Rs. 4 lacs on the basis of alleged disclosure on account of bungalow-No evidence is brought on record by the Revenue in support of said disclosure As regards gold jewellery, in the light of CBDT instructions, any middle class Indian family may be having jewellery and gold ornaments to the extent of 25 tolas-As regards undisclosed investment in furniture, detailed source of investment with due confirmation from the party concerned was filed-None of the authorities below considered this explanation of the assessee-Addi....
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.... required to be given by an Assessing Officer before imposing a penalty. In the instance case, the penalty proceedings were initiated without specifying any particulars or specific charge against the assessee in either the assessment order or even the penalty notice. It is important to point out that both the charge for "concealment of income" and also "furnishing of inaccurate particulars" was made in the assessment orders in all these cases" - " The Charge is not specific, the Penalty order says that I am satisfied that the assessee has concealed her particulars of income-and also furnished inaccurate particulars of income within the meaning of section 271(1)(c) of the Act...." Reliance is placed on the Supreme Court Judgement in case of Dilip N. Shroff (2007) 291 ITR 519 (SC). In which it was held that section 271(1)(c) is in two parts, the first part refers to concealment of income, the second part refers to furnishing of inaccurate particulars thereof. "Before, thus, a penalty can be imposed, the entirety of the circumstances must reasonably point to the conclusion that the disputed amount represented income and that the ....