INCOME TAX ACT, 1961

Section 153B

Search and seizure - Assessment - Under section 153B - Addition on account of undisclosed investment in construction of building--Assessee pleading addition to be covered by extra surrender made in return

Assessee belonged to Motisons Group on whose business and residential premises search action under section 132 was carried out. During the course of search at residence of employee of assessee group who was looking after the work of construction of Motions Tower). Annexure BS-11, the Shape of internal correspondence and reconciliation done by Alumayer India Pvt. Ltd. and Motisons Global Pvt. Ltd. was found and as per such detail total amount in respect of work done by AIPL come to Rs. 5,92 crores , out of which Rs. 5,23 crores was only found recorded in print out of excel sheet taken from pen drive seized AO added the difference of Rs. 68 lakh which as undisclosed investment in construction of building over and above the surrender of Rs. 14 crores made by assessee in return. Assessee in his search statement clearly state that investment mentioned in Col B of seized excel sheet was subject to verification from books of account and it might be more or at lesser figure.Held: From the statements of assessee it was clear that surrender was tentative and subject to reconciliation. The statement had to be read as whole and addition of Rs. 68,40,468 was covered by excess surrender in the return and further addition of Rs. 68,40,468 over and above Rs. 14.57 crores was not justifiable and therefore, AO was directed to delete the addition of Rs. 68,40,468.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14

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