Conveyancing Rebutting Notice Issued under Section 263 Where Assessment Completed Without Including Income Surrendered During Survey

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The Tax Publishers Income Tax--Conveyancing Rebutting Notice Issued under Section 263 Where Assessment Completed Without Including Income Surrendered During Survey Pawan Prakash To The Commissioner of Income Tax Range........... Jodhpur *Re. :* In the matter of M/s........ having PAN...... Carrying business at...... Assessment Year..... *Ref. :* Your notice under Section 263 *Sub. :* Written submissions Dear Sir, With reference to above, we are to submit as under : 1. A survey was conducted at the business premises of the assessee on 5-4-2018 wherein the assessee had disclosed additional income of Rs. 40 lakhs and Rs. 20 lakhs for the assessment years 2017-18 and 2018-19 respectively on account of income earned by him out of books. Though the documents found at the time of survey were minutely inspected and investigated, however, no objectionable notings, papers, or record of any kind were found which could indicate that the assessee was involved in any of the activities leading to generation of income out of books. 2. Subsequently, the assessee, vide application dated 26-4-2018 filed on 29-4-2018 with the office of concerned assessing officer, retracted from the above disclosure. The assessee, after making the statement at the time of survey, had requested the authorised officer to grant the copy of statement recorded. However, the concerned officer gave the understanding to the assessee that the same will be given to the assessee when it was to be used against him. Thus when the notices were received for the assessment proceedings of assessment year 2017-18 and for assessment year 2018-19 the authorised representative of the assessee approached the assessing officer for grant of Xerox copy of statement and the said request was not acceded on one or other pretext and ultimately Xerox copy of statement was provided in September 2018. 3. Along with the return of income the assessee had appended the following note which is identically worded for both the assessment years except difference in assessment years. The said note reads as under : '1. The survey proceedings under Section 133A of the Income Tax Act, 1961, was carried out on 5-4-2018 at my business premises situated at 3, Ramkripa Complex, Sardarpura, Jodhpur. The authorised officer recorded my statement and the statements of disclosure of Rs. 40 lakhs was recorded for the assessment year 2017-18 and of Rs. 20 Lakhs for the assessment year 2018-19. The Xerox copies of the statement recorded was made available to me only in the month of September, 2018 and on scrutiny and verification of said statements. I decided to retract from the same and accordingly the retraction petition dated 1-10-2018 for the retraction of the statement had been filed with the various income-tax authorities namely, Commissioner of Income Tax, Joint Commissioner of Income Tax and Assistant Commissioner of Income Tax. In pursuance of the contention taken in the retraction statement as stated hereinbefore no effects of disclosure had been given in the statement of total income and return of income for assessment year 2017-18 and 2018-19.' 4. After considering these submissions, the assessing officer had assessed the assessee at returned income for both the assessment years. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Conveyancing

Rebutting Notice Issued under Section 263 Where Assessment Completed Without Including Income Surrendered During Survey

Pawan Prakash

The Commissioner of Income Tax
Range...........
Jodhpur

Re. : In the matter of M/s........ having PAN...... Carrying business at...... Assessment Year.....

Ref. : Your notice under Section 263

Sub. : Written submissions

Dear Sir,

With reference to above, we are to submit as under :

1. A survey was conducted at the business premises of the assessee on 5-4-2018 wherein the assessee had disclosed additional income of Rs. 40 lakhs and Rs. 20 lakhs for the assessment years 2017-18 and 2018-19 respectively on account of income earned by him out of books. Though the documents found at the time of survey were minutely inspected and investigated, however, no objectionable notings, papers, or record of any kind were found which could indicate that the assessee was involved in any of the activities leading to generation of income out of books.

2. Subsequently, the assessee, vide application dated 26-4-2018 filed on 29-4-2018 with the office of concerned assessing officer, retracted from the above disclosure.

The assessee, after making the statement at the time of survey, had requested the authorised officer to grant the copy of statement recorded. However, the concerned officer gave the understanding to the assessee that the same will be given to the assessee when it was to be used against him. Thus when the notices were received for the assessment proceedings of assessment year 2017-18 and for assessment year 2018-19 the authorised representative of the assessee approached the assessing officer for grant of Xerox copy of statement and the said request was not acceded on one or other pretext and ultimately Xerox copy of statement was provided in September 2018.

3. Along with the return of income the assessee had appended the following note which is identically worded for both the assessment years except difference in assessment years. The said note reads as under :

'1. The survey proceedings under Section 133A of the Income Tax Act, 1961, was carried out on 5-4-2018 at my business premises situated at 3, Ramkripa Complex, Sardarpura, Jodhpur. The authorised officer recorded my statement and the statements of disclosure of Rs. 40 lakhs was recorded for the assessment year 2017-18 and of Rs. 20 Lakhs for the assessment year 2018-19. The Xerox copies of the statement recorded was made available to me only in the month of September, 2018 and on scrutiny and verification of said statements. I decided to retract from the same and accordingly the retraction petition dated 1-10-2018 for the retraction of the statement had been filed with the various income-tax authorities namely, Commissioner of Income Tax, Joint Commissioner of Income Tax and Assistant Commissioner of Income Tax.

In pursuance of the contention taken in the retraction statement as stated hereinbefore no effects of disclosure had been given in the statement of total income and return of income for assessment year 2017-18 and 2018-19.'

4. After considering these submissions, the assessing officer had assessed the assessee at returned income for both the assessment years.