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| The Tax Publishers2019 TaxPub(DT) 6577 (Ind-Trib) : (2019) 202 TTJ 0091 : (2019) 074 ITR (Trib) 0566 INCOME TAX ACT, 1961
Section 153A
Addition made on the basis of a statement not given under section 132(4) and without referring to any incriminating material found during the course of search could not be sustained.
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Search and seizure - Assessment unders ection 153A - Addition made on the basis of statement not recorded under section 132(4) and without making reference to incriminating material -
Assessee was a partnership firm carrying on business of Real Estate as Builder and Developer. Search was initiated on Signature Group as well as business associates on 29-1-2014. Assessee firm being part of Signature Group was also covered under search action. In case of assessee search action commenced on 29-1-2014 and was concluded on 31-1-2014. However search under section 132 in case of Signature Group and other concerns concluded on a later date. AO, after considering statement and search material of Signature Grpup, came to know that one of the partner of assessee firm Mr. Vipin Chauhan gave a statement on 2-2-2014 under section 132(4) and surrendered undisclosed income of Rs. 2 crores on behalf of firm. On perusal of return income, AO noticed that assessee had not offered surrendered undisclosed income of Rs. 2 crores for tax. During the course of hearing assessee retracted from addition of income stating that no unaccounted income had been earned by the firm and also it had not incurred any unrecorded/unexplained expenses. However, AO made addition.Held: Statement given by Mr. Vipin Chouhan under section 132(4) on 2-2-2014 could not be considered as statement given under section 132(4) in the instant case of assessee firm since search action in case of assessee was concluded on 31-1-2014 by the Authorised Officer. In case of other business concerns referred to by Mr. Vipin Chouhan in his statement given on 2-2-2014 where search action under section 132 was continuing the statement dated 2-2-2014 would be considered as statement under section 132(4), no reference had been given by Revenue Authorities to any incriminating material found during search at business premises of the assessee, which could be correlated to alleged surrendered income, therefore, addition made by AO could not be sustained.
Asstt. CIT Sundeep Maheshwari ITA No. 524/IND/2017 vide Order, dated 13-2-2019, Kailashben Mangarlal Chokshi v. CIT (2008) 14 DTR 257 (Guj.) : (2010) 328 ITR 411 (Guj) : 2010 TaxPub(DT) 190 (Guj-HC) and Shree Ganesh Trading Co. v. CIT, Tax Case No. 8 of 1999 Order, dated 3-1-2013 : (2013) 257 CTR 159 (Jhar) : 2013 TaxPub(DT) 964 (Jhar-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, INDORE BENCH
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