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2023 (5) TMI 684 - AT - Income TaxAssessment of trust - Unaccounted fee receipts - reliance on statement recorded u/s 133A of Accountant of the Society - difference on account of annual charges mentioned in the statement and chart Dakhila Fees Vivran Chart - HELD THAT - Assessee had placed various details before the authorities but we find there is no finding of the authorities on the evidences furnished by the assessee to demonstrate the contention of the assessee being wrong. We find that the addition has been made on the basis of the statement of the accounted recorded u/s 133A of the Act. It is a settled law that statement recorded during the survey operation u/s 133A of the Act may be a relevant material but in the absence of further materials to substantiate it, the statement recorded u/s 133A of the Act could not be the basis for making addition. Considering the totality of the aforesaid facts, we are of the view that the AO was not justified in making the addition. We therefore direct its deletion. Thus the ground of assessee is allowed.
Issues involved:
The issues involved in the judgment are related to the addition of Rs.1,46,000/- made by the Assessing Officer based on discrepancies in the fees charged and accounted for by a society running a school. The primary contention is whether the addition made by the AO was justified or not. Issue 1: Addition of Rs.1,46,000/- The case revolved around the addition of Rs.1,46,000/- by the Assessing Officer due to discrepancies in the annual charges shown in the statement of the Accountant of the society and the official records. The AO considered the difference as taxable income of the assessee. The CIT(A) upheld the addition, leading to the appeal before the Tribunal. The assessee argued that despite providing various documents and evidence during the proceedings, the authorities did not verify the documents properly and solely relied on the statement of the Accountant recorded during the survey. The addition was deemed unjustified as it was solely based on the statement without corroborating evidence. The Tribunal found that the addition was made solely based on the statement of the Accountant recorded during the survey, without further substantiating evidence. It was established that the statement alone could not be the basis for making the addition. Consequently, the Tribunal directed the deletion of the addition of Rs.1,46,000/-. The ground of the assessee was allowed, and the appeal was consequently allowed.
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