Ruling partly allows department appeals on search statement admissibility; deletes unauthorised additions, curtails extrapolation, upholds s.80IA deduction, deletes ss.69A/69C additions

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The ITAT allowed in part the Department's appeals regarding admissibility of a statement recorded during search, finding the assessee failed to prove duress in retraction; grounds 1-7 of the Department's appeal were allowed. However, the Tribunal upheld the CIT(A)'s deletions of additions based on documents seized from a third party's premises, holding no corroborative link to the assessee's books. An extrapolated addition for under-invoicing was curtailed and quantified at Rs.2.419 per kg for 230,407.20 kg supplied to a specified purchaser; wholesale extrapolation was disapproved. Additions under ss.69A and 69C were deleted. The Tribunal disallowed an enhancement of GP to 24%, allowed deduction under s.80IA for captive steam generation, and held the s.153A assessment unsustainable as not founded on incriminating material.....