TaxTMI 
TaxTMI 
2020 (4) TMI 738
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.... to the tune of Rs. 4,62,17,350/- (being difference of income of Rs. 9.55 Crores and returned income of Rs. 4,87,82,650/- to the returned income without considering the contents of the Profit and Loss account maintained by the assessee in the computer system in his premises found during survey on 19.01.2010 and also admitted as his income in the statement given by the assessee on oath. 2. On the facts and circumstances of the case, the Ld. CIT(A) has erred in deleting the addition made by the Assessing Officer without considering that the assessee had not retracted his statement nor had he given any explanation as to how the profit of Rs. 8.63 Crores as on 19.01.2010 had come down to Rs. 4.87 Crores as on 31.03.2010. 3. On....
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..../- was added back to the total income of the assessee by the Assessing Officer on account of actual profit of the business, based on the extracted profit and loss account and also on account of statement given by the assessee. We are reproducing herein below the Para 5.1 and 5.2 of the order passed by the Assessing Officer which was to the following effect: "5.1 It is found that the action under section 133A was conducted in the business premise of the assessee on 19.01.2010. The assessee has given a statement under oath during the survey action. The relevant questions and their answers are reproduced as below: Q. 23. A copy of the profit and loss account as on date has been extracted from your computer in respect of your ....
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....at the assessee has net profit of Rs. 4,87,82,650/- during the year under consideration. As per the statement given by the assessee under oath in front of the then ACIT, Circle-4, Pune, he stated that during the year under consideration there is better gross profit than in the earlier years. Further, the assessee has not retracted from his statement. It was asked to the assessee vide order sheet noting dated 04.02.2013 as to why the income of Rs. 4,62,17,350/- should not be added back to your total income as you have stated in the statement under oath during the survey action. In response to the same, the assessee submitted as under: 1) Your attention is invited to Question Number 25 and the answer thereto. The assessee on his own ....
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..... I find that the amount of Rs. 9.5 Crores which has been referred to both by the AO and the appellant has been explained by the appellant as pertaining to three different assessment year as mentioned above. I also find that the AO had considered the statement itself only as chronology of events and also the same as 'concrete material' for making such a huge addition. I agree with the appellant that such an addition based on statement only was uncalled for. Judicial decisions cited by the appellant support the arguments placed by the Ld. AR. Under this circumstances, I do not find any merit for sustaining such ad-hoc estimated addition of Rs. 4,62,17,350/-. The addition so made is accordingly deleted. Ground No.1 raised by the appellant is ....
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....rofit and loss account submitted by him and therefore, the Ld. AR prayed for upholding the order of the Ld. CIT(Appeals). 6. We have heard the rival contentions and perused the material available on record. We find that the basis for making addition amounting to Rs. 4,62,17,350/- was not only the statement recorded by the Revenue during the course of survey but also the profit and loss account extracted from the computer system of the assessee on the basis of which the assessee has disclosed his income at Rs. 8.63 Crores as on 19.01.2010. The Ld. CIT(Appeals) has failed to appreciate the statement of the assessee and further failed to examine the profit and loss account retrieved at the time of survey which was admitted to be correct by ....