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TMI Blog2018 (6) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ason to interfere with the order of the lower authority - Decided against revenue - ITA No.1717/Chny/2017 And C.O. No.128/Chny/2017, ITA No.1718/Chny/2017, C.O. No.126/Chny/2017 And ITA No.1719/Chny/2017 - - - Dated:- 8-6-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant : Shri V. Nandakumar, JCIT For The Respondents : Shri Y. Sridhar, CA ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: The appeals of the Revenue in respect of three independent assessees are directed against the respective orders of the Commissioner of Income Tax (Appeals)-3, Madurai, dated 17.04.2017 for the assessment year 2012-13. The first two assessees filed cross-objections in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, the CIT(Appeals) is not justified in deleting the addition made by the Assessing Officer. According to the Ld. D.R., the accounts were prepared to accommodate the investment made in the construction. Therefore, the source of income from the partners for making investment is not accepted and the Assessing Officer made addition in the respective hands of the assessees. 3. On the contrary, Shri Y. Sridhar, the Ld. representative for the assessees, submitted that all the assessees are engaged in the business of hospitality, grocery and consumer products. There was a survey in the group concern on 18.02.2013. According to the Ld. representative, on the basis of the balance sheet, the Assessing Officer found that there was investment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... representative, during the course of survey operation under Section 133A of the Act, the Assessing Officer was not empowered to administer oath before examination of any person. Therefore, the statement said to be recorded during the course of survey operation under Section 133A of the Act has no evidentiary value. Hence, according to the Ld. representative, the statement said to be recorded from Shri Jayaprakash Narayanan has no evidentiary value, therefore, assessment cannot be framed on the basis of the statement said to be made by Shri Jayaprakash Narayanan. The Ld. representative placed his reliance on the judgment of Madras High Court in CIT v. S. Khader Khan Son (2008) 300 ITR 157. 4. Referring to the circulars issued by the CBDT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h deficiency as projected by the Assessing Officer in the assessment order. Hence, the CIT(Appeals) has rightly deleted the addition made by the Assessing Officer in all the appeals. 5. The assessees, M/s Aryaas Super Market and M/s Hotel Aryaas, have filed cross-objections in support of the order of the CIT(Appeals). 6. We have considered the rival submissions on either side and perused the relevant material available on record. During the course of survey operation, on the basis of the disclosure made by the assessees in the balance sheet, the Revenue authorities found an investment of ₹ 9 Crores by each assessee in Hotel M/s Ramyaas Inn, which is also known as Hotel Apple Tree. The assessees explained before the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... does not empower the authorities to administer oath, therefore, the statement recorded during the course of survey operation has no evidentiary value. In view of this judgment of Madras High Court, the statement said to be recorded from Shri Jayaprakash Narayanan alone cannot be a basis for any making any addition with regard to cost of construction of the hotel building. Moreover, the CBDT, being the apex body to administer the direct taxes, instructed its officers to search for material evidence during the course of survey operation and not to extract statement from taxpayers. In the case before us, there is no evidence found during the course of survey operation to disprove the claim of the assessee that the source of funds were from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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