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TMI Blog2016 (12) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... ment under oath referring to sections 191, 193, 195, 199 of the India Penal Code which makes filing a false affidavit a criminal offence, may require the assessee in its own self interest to ensure that the deponents are aware that filing of false affidavits has serious consequences. The claim of any fact or knowledge known to the deponent to be false which he believe to be false and/or atleast did not know to be true is open to the challenge of perjury which though traditionally may not be invoked by the law enforcement agencies in every situation does not mean that it is legally acceptable to file irresponsible affidavits. Assertion of false facts knowingly is a criminal offence. Accordingly considering the submissions of the parties, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the AO and, accordingly, failed to provide reasonable opportunity to the applicant. 4. That the order passed by CIT(A) is unjustifiable, unreasonable and bad in the facts and circumstances of the case and same deserves to be set aside and matter may be restored to the file of AO / CIT(A) to decide afresh after providing an opportunity to the appellant. 5. That the appellant craves the leave to add, amend, withdraw, modify or vary any of the grounds rose above on or before the date of hearing." 2. Both parties have been heard. The record shows that the AO required the assessee to support its salary expenses of ₹ 23,98,000/-. The AO held that despite opportunity the assessee could not produce supporting documents. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement of facts filed alongwith form No. 35, argument is taken that after search only genuine business activity is carried out i.e. business of investment. I do not agree with the above argument. Once a company was acceptedly a dummy/paper company. Its entire balance sheet i.e. asset & liability ""was fictitious.*"Unless entire balance sheet as on date of search is recasted after the removal of those accommodation entries, how it can be presumed that subsequent activity on basis of earlier balance sheet can be treated as genuine business actively. In view of the above, I agree with the conclusion of the assessing officer that there cannot be any genuine expense. However, since the appellant has earned real income by-way of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Affidavits of the employees and copies of their PAN Card at pages 52 to 73; and 74 to 77 of the Paper Book which would establish that the assessee company was not a paper company. In these circumstances, it was submitted the addition on facts was not warranted. 5. The Ld.Sr.DR submitted that the addition deserves to be confirmed and at best the evidences can be restored to the AO and not to the CIT(A) as these are evidences which were never made available to the AO. However it was submitted they may not now be considered at this stage for grant of any relief. 6. Both the parties have been heard. Considering the respective stands, I am of the view that in the peculiar facts and circumstances of the case the evidences which the assessee st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee before the ROC. It is necessary to call for and examine the Memorandum and/or Article of Association especially the Objects clause of the assessee which would throw light on what was the business of the assessee. It is only then the supporting evidences would be capable of throwing light on the stated claim that the business was carried on. It is seen that none of these facts are available on record. 6.2. It may also not be out of place to take note of the prevalent public perceptions that the filing of affidavits by the parties is a routine exercise wherein perceived minor deviations from truth are minor transgressions with no serious consequences for the deponent. The general perception that careless or deliberate mis-statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If a fact which is capable of being demonstrated by an evidence by way of a document or fact then an affidavit cannot be considered to be acceptable evidence for such document. In the facts of the present case, it can be at best considered to be a written statement of facts voluntarily made by an affiant or deponent under an oath or affirmation administered by a person authorized to do so by law. Since the affidavits filed in the present case are at the instance of the tax payer and not mandated under any law, the Assessing Officer in order to highlight the serious consequences which may follow a false affidavit or statement under oath referring to sections 191, 193, 195, 199 of the India Penal Code which makes filing a false affidavit a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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