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TMI Blog2013 (8) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 49,37,430/-. The assessee derived his income from the trading and manufacturing of cotton-seed, cotton seed-oil, mustard seed-oil, oil-cakes etc. A survey u/s 133A of the Income Tax Act, 1961 ('the Act' for short) was conducted at his business premises on 24/01/2008. During assessment proceedings, various defects were noticed by the A.O. in the books of accounts of the assessee and, therefore, he rejected them. 2.2 During the course of survey, in his statement recorded on 24/01/2008, the assessee Shri Bhagwan Kuamr Tapariya, had admitted the following unaccounted income, while replying to Question No. 14 of his statement :- (i) Unaccounted investment in the Residential property Rs. 17,50,000/- (ii) Excess cash found Rs. 8,97,350 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which are extracted in the former part of this order. The reiterated the reasons given by ld. CIT(A)for sustaining the impugned addition. 2.5 Regarding addition of Rs. 22,44,277/- (sustained by the ld. CIT(A)) it has been argued that as per settled principle of law no statement can be recorded u/s 133A and if such a statement is recorded no forced surrender can be obtained. Above all it was argued that only on the basis of such a statement, which does not have any evidentiary value, no addition can be made. The above submissions have been refuted by ld. D.R. tooth and nail. 2.6 After considering rival submissions we have found that this addition is based solely on the statement of the assessee recorded u/s 133A of the Act. There is a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of oil in process in tanks were valued on selling rate which ought to be valued as per cost of raw oil and the process cost. d. The stock lying in adjutant premises belonging to the son of assessee namely Low I B [P.B. Page 45 S.No. 2]. The assessee never deals in such items. The assessee produced the purchase vouchers by son and shown that payment was made by assessee's son by a/c payee cheque. e. That weight of oil in tank was taken more than its capacity and lost sight to the fact of accumulated GAD which even reduces the quantity of oil in the tank. f. The assessee filed detailed working of stock but the same was rejected without pointing out any error simply on the presumption of afterthought." Further, the A.O. has also a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horities guessed that this amount has been availed of without paying interest and therefore, an addition of Rs. 30,000/- as notional interest was made. After hearing both sides in the light of the facts and evidence pertaining to this issue it is undisputedly found that there was a opening capital of Rs. 55,97,139/-and closing capital was of Rs. 75,52,870/- (APB - 22) on which no interest has been claimed. In these circumstances, the charging of notional interest is not justified. The A.O. has not even been able to establish nexus between the two. Accordingly, we delete this addition of Rs. 30,000/- and allowed ground No. (2) of this appeal. 4 Ground No. (3) is regarding charging of interest u/s 234B and 234C. The charging of interest unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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