INCOME TAX ACT, 1961

Section 133A

Survey - Income declared during survey - Year of taxability - Assessment year for which declaration had been made or the year in which survey was conducted--Assessee's declaration stood accepted by survey team

During survey conducted at business premises of assessee-firm some discrepancies were noticed which were offered for taxation by the partner for assessment year 2012-2013 which had been accepted by AO on conditional basis, i.e., for payment of self-assessment tax of Rs. 40,00,000 but assessee distracted from his commitment, therefore, AO treated it as undisclosed income for the assessment year 2013-2014. Because the survey was conducted on 26-4-2012. As per assessee, AO should have made additions in the assessment year 2012-13 because at the time of survey assessee had declared income for assessment year 2012-2013. Held: Declaration was made by assessee only for assessment year 2012-2013 in which partner had undertaken payment of self-assessment tax of Rs. 40 lakhs in four installments. Except the said declaration, there were nowhere in the statements recorded during the course of search, any other declaration by the partners. Once statements had been accepted by survey team, tax should have been calculated by them for the relevant years accepted by assessee. In view of above, declaration was to be added in assessment year 2012-2013.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-2014

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