9911796707
TMI Blog2017 (5) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... Engineers Ltd. on 31-01-2012. The assessee 2. In appeal, the Department has assailed the findings of Commissioner of Income Tax (Appeals) in deleting the addition of Rs. 1,14,45,953/- made by the Assessing Officer on the basis of declaration of the assessee during search action. 3. The facts of the case as emanating from records are: A search action u/s. 132 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was carried out at the premises of Fabtech Projects & Engineers Ltd. on 31-01-2012. The assessee company is a part of Fabtech Group and is engaged in the business of fabrication and dealing in MS and SS Items. During the course of search, statement of Shri Bira A. Rupnar, Chief Managing Director of Fabtech Projects & En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, the Department is in appeal before the Tribunal against the findings of Commissioner of Income Tax (Appeals). 4. Shri Alok Malviya representing the Department vehemently defended the assessment order and submitted that the Commissioner of Income Tax (Appeals) has erred in deleting the addition made by the Assessing Officer. The Commissioner of Income Tax (Appeals) has failed to appreciate the fact that the assessee had declared additional income of Rs. 3,95,50,291/- on account of bogus purchases after due application of mind, after considering all the details in the books of account and after reconciliation with the third parties. While filing return of income in response to notice u/s. 148, the assessee offered lower income after bif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. The aggregate amount declared for Financial Year 2004-05 is Rs. 3,95,50,291/- which includes aforesaid opening balances. The Note given at end of the table clearly indicates that declared amount of income in financial year 2004-05 includes opening balances to the extent of Rs. 1,45,68,748/- which was offered as income on account of cessation of liability in Financial Year 2004-05. The ld. AR prayed for dismissing the appeal of the Department and upholding the findings of Commissioner of Income Tax (Appeals). 6. We have heard the submissions made by the representatives of rival sides and have perused the orders of the authorities below. We have also considered the documents on which the ld. AR of the assessee has placed reliance. The De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the final amount of Rs. 2,81,04,338 declared as additional income in its return of income. As stated at the time of search, the Appellant had declared amount of Rs. 3,95,50,291 inclusive of opening balance and purchases made during the year is as under: Name of the Creditor Opening balances as on 01.04.2004 Purchases debited during F.Y. 2004-05 Total Income declared for F.Y. 2004-05 on a/c of bogus purchases Shree Sai Industries 42,73,486 1,16,77,100 1,59,50,586 Soham Metal Pvt. Ltd. 1,02,95,262 1,33,04,443 2,35,99,705 Total 1,45,68,748 2,49,81,543 3,95,50,291 2.1.8 As against the above declaration, the Appellant submitted that the above mentioned amounts also included the opening balance with these parties. Ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant had offered additional income during the search after due application of mind and after considering its books of accounts. Therefore, the Appellant's action is an afterthought. 2.1.10 I do not agree with the learned AO because the Appellant's contention is based on its books of accounts and documents. Entries in the books of accounts and contents of the documents could be proved incorrect on verification, if they are incorrect. However, it would not be possible to state that the Appellant's contention is afterthought without carrying out any verification. There is no law that the admission once made by the deponent cannot be changed later, if the deponent realizes that statement on oath was erroneously made. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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