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TMI Blog2016 (4) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance of expenses - Held that:- The addition made is on adhoc basis. Considering the submissions of the Counsel and facts of the case, we are of the opinion that unverifiable vouchers cannot be avoided in this line of business. Keeping that in view, we are of the opinion that a disallowance of ₹ 5 Lakhs will meet the ends of justice. Consequently, we restrict the disallowance to an amount of ₹ 5 Lakhs. Treating of the agricultural income as ‘income from other sources’ - Held that:- Assessee has offered an amount of ₹ 6.98 Lakhs from 17.25 acres of land and AO took agricultural income per acre ₹ 15,000/- per acre and allowed agricultural income to an extent of ₹ 2.58 Lakhs. Balance of the amount was treated as ‘income from other sources’. Ld. CIT(A) confirmed the same considering the facts of the case. 13.1. After considering the rival contentions, we do not see any reason to interfere with the order of the CIT(A). Assessee has not justified earning so much of agricultural income and the estimation by the AO is reasonable. Since no contradictory evidence is filed before us, we see no reason to interfere with the orders of the AO and CIT(A) on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f books of account post survey. Assessee has disclosed all the incomes correctly and therefore, there is no need to make further addition on the basis of the so-called declaration in the course of survey. Assessee relied on various case laws not only before the AO but also before the Ld. CIT(A). 3. After considering the detailed submissions and case law relied on by the assessee, as extracted in the appellate order, Ld. CIT(A), however, confirmed the amount by stating as under: 4.2. I have seen carefully the facts and evidence. First of all, there is no doubt about the fact that huge investment had been made in the aforementioned to projects by the appellant. It is incorrect to say that the appellant did not have access to its own books of account. All the documents were available with the appellant at all times. There was no coercion or undue influence on the managing director at the time of survey and he had full access to all the information that he wanted. He was fully aware as of all the details of his investments as well as the minute details of his projects. It was only after full verification that he had voluntarily disclosed the amount in question. It is also to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... however, relied on the orders of the AO and CIT(A) to submit that assessee has bonafidely admitted the incomes which should have been honoured by him. Ld. Counsel in reply submitted that assessee has filed return for earlier years also and various additions have been made by the AO to submit that assessee has paid taxes as per the evidence available on record. 6. We have considered the rival contentions and perused the evidence on record. As seen from the order of the AO, he has not rejected the Books of Account nor recorded any unaccounted so-called huge investments , the basis of which was the declaration during the survey. As rightly contended by the Ld. Counsel for assessee, there is no impounded material or any evidence available with the Revenue to establish that assessee has earned a tentative figure of ₹ 70 Lakhs as un-explained investment and its partners an amount of ₹ 25 Lakhs each. We are also surprised to notice that Ld. CIT(A) after recording the detailed submissions and case law relied upon by assessee did not even comment about those aspects and has simply confirmed the additions stating that huge investment was made in the aforementioned objects b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scope and ambit of the materials collected during the course of survey, the action under section 133A would not have any evidentiary value and that it could not be said solely on the basis of the statement given by one of the partners of the assessee-firm that the disclosed income was assessable as lawful income of the assessee . 8. From various judicial pronouncements, it is clear that an admission by assessee during the search or survey proceedings cannot be considered as conclusive unless it is supported by corroborative evidence. With regard to investments on which, the statement was taken, there is no material identified during the survey operations so as to determine the unexplained investment at ₹ 70 Lakhs in the hands of the firm and ₹ 25 Lakhs in each of the partners hands. From the facts, it can be seen that except relying on the answer given by the Managing Partner to a question posed by the AO in the course of survey, no independent information/evidence/material was brought on record so as to support the additions made. Since there is no evidence corroborating the so called admission by assessee, we are of the opinion that the addition cannot be made s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were properly couched and proven, then he could have provided conclusive evidence to prove his point both during the assessment proceedings as well as during the appeal proceedings. He did not do so. 6.4. Based on the above facts and circumstances, I hold that the appellant had properly surrendered the amount of ₹ 10 lakhs keeping in view all the discrepancies in the vouchers and books. The discrepancies remained unproven even during appeal proceedings. Therefore, the addition on this account is ordered to be confirmed . 10. After considering the rival contentions, we are of the opinion that the addition made is on adhoc basis. Considering the submissions of the Counsel and facts of the case, we are of the opinion that unverifiable vouchers cannot be avoided in this line of business. Keeping that in view, we are of the opinion that a disallowance of ₹ 5 Lakhs will meet the ends of justice. Consequently, we restrict the disallowance to an amount of ₹ 5 Lakhs. 11. In the result, appeal in ITA No. 533/Hyd/2014 is partly allowed. 12. In both the individual cases of Shri Gona Ravinder Rao and Smt Gona Neeraja Hari Priya, addition of ₹ 25 Lakhs s ..... 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