TaxTMI 
TaxTMI 
2022 (11) TMI 420
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....ht to have appreciated the fact that the addition was based on the sworn statement recorded from the assessee's brother, Shri. Murugu Sundaram u/s.132(4) on 06.07.2015, that he alongwith his brother had made payment of Rs.9.44 crores to M/s. BSR Builders, together with cash of Rs.11.20 crores. 2.2 The learned CIT(A) ought to have appreciated the fact that the assessee had admitted the cash & Cheque components but not disclosed the payments in the form of DD as they were from a totally undisclosed source. 2.3 The learned CIT(A) erred in directing the AO to allow the assessee's claim without pinpointing the exact entries, even though the assessee did not furnish the details of all the payments but had only submitted the extract of the Balance Sheet and entries in the financials to prove that a payment of Rs.2,50,75,050/- to M/s. BSR Builders were spread over a period of 1.4.2012 to 31.3.2016. 2.4 The learned CIT(A) erred in directing the AO to allow the assessee's claim even though the retraction statement was made after a considerable period of nearly two years and hence, the retraction statement cannot have any evidentiary value. 2.5 ....
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....2.2017. 3.3 Honoring its statement as given u/s 132(4), the assessee offered undisclosed income of Rs.5.60 Crores in AYs 2013-14 to 2016-17 and paid due taxes. The returned income was accepted for AYs 2010-11 to 2015-16. For this year, the assessee offered income of Rs.335.39 Lacs which include Rs.50 Lacs which is part of offered undisclosed income of Rs.560 Lacs. However, Ld. AO made further addition of Rs.242.29 Lacs as undisclosed income. 3.4 The addition stem from the statement of Dr. Murugu Sundaram recorded on 06.07.2015 wherein it was stated that on the date of search, sum of Rs.944.14 Lacs was paid jointly in the form of Demand Draft from the year 2012 onwards. The Ld. AO concluded that apart from payment of on-money in cash, an amount of Rs.944.14 Lacs was also paid. The assessee, on the other hand, admitted to have made cheque payment of Rs.459.55 Lacs. The difference in payment value for Rs.484.59 Lacs (Rs.944.14 Lacs - Rs.459.55 Lacs) could not be explained by the assessee and accordingly, half of the same was added to the income of the assessee which resulted into impugned addition of Rs.242.29 Lacs. Similar addition was made in the hands of Joint holder Dr. Muru....
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....before us. Our findings and Adjudication 5. From the facts, it emerges that the assessee and his brother Dr. Murugu Sundaram were subjected to search action u/s 132 on 06.07.2015 and statement u/s 132(4) was recorded from both of them. One of the seized documents includes an agreement entered into by the assessee jointly with his brother with M/s BSR Builders for purchase of 25% share in the proposed mall in OMR, Thoraipakkam. As per the agreement, the assessee has his brother agreed to pay onmoney of Rs.11.20 Crores to the builders. This was apart from payment in Cheque to builders. Accepting the same, the assessee and his brother offered unaccounted income of Rs.5.60 Crores each and declared this income in the returns of income for various years. It could thus be seen that whatever on-money was mentioned in the agreement, the same was admitted as well as honored by the assessee and his brother and due taxes were paid on the same. According to terms of the agreement, no other on-money was to be paid. The payment made through cheques has obviously been paid through banking channels and the payment so made could not be held to be unaccounted money. There is no such allegation ....
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.... Ans. I submit that apart from cash component of Rs.5.60 Crores paid to BSR, the balance amount was paid only way of cheques. I shall furnish details of cheque payments...... The same has further been clarified in statement dated 28.12.2017 as under: - Q.No.4 Kindly tell ask how much payment you are supposed to make to M/s BSR builders for the purchase of part of the portion in the BSR OMR mall? in the F.Y.2015-16 and 14-15 how much payment you have made through cheque. Also how much you have paid in cheque till date. Ans. The agreed portion of the total payment to BSR for the purchase of our share of the property in BSR OMR mall is Rs.8,17,33,509/- (for both). In the F.Y.2014-15 the payment made by cheque by each of us is Rs.1,32,57,500/- in F.Y. 2015-16 relevant to A.Y.16-17, no payment was made. Total payment till date by Cheque is Rs.3,47,27,500/- for myself and Rs.3,57,27,500/- for my brother Dr. Raja Sundaram thus totalling to Rs.7,04,55,000/-. Q. No.5 During the search action u/s 132 of the I.T. Act, you have deposed in the sworn statement recorded on 06.07.2015 that you and your brother together paid Rs.9,44,40,475/- in the form of demand....