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TMI Blog2018 (8) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of declaration in the statement recorded u/s 132(4). Except this, the AO has not given any reasons for not accepting return filed by the assessee for AY 2013-14 admitting undisclosed income of ₹ 50 lakhs. No doubt, the assessee has not filed any retraction not to admit undisclosed income for AY 2012-13, but that by itself would not be a ground for the AO to make addition towards undisclosed income in the current assessment year, when he has not disputed the fact that the assesee has disclosed undisclosed income in the assessment year 2013-14. Therefore, we are of the considered view that when there is no difference in rate of tax for both the assessment years, i.e. AYs 2012-13 and 2013-14, there is no reason for the AO to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were outside the books of account. When such incriminating material was confronted to the assessee, Shri Bhuleshwar Mishra, partner of the assessee firm, in the statement recorded u/s 132(4) of the Act admitted to have incurred various expenditure in cash outside the books of account and accordingly, admitted undisclosed income of ₹ 50 lakhs for the AY 2012-13. Consequent to search, notice u/s 153A of the Act was issued on 31-07-2013. In response to the notice, the assessee has filed its return of income on 24-03-2014. The case has been selected for scrutiny and notices u/s 143(2) and 142(1) of the Act were issued. In response to notices, the authorized representative of the assessee appeared from time to time and filed various deta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al before the CIT(A). Before the CIT(A), the assessee has reiterated its submissions made before the AO to argue that the undisclosed income admitted during the course of search, in fact , pertains to AY 2013-14, but by mistaken understanding of the facts, the same has been admitted for AY 2012-13. Assessee further submitted that it has disclosed undisclosed income of ₹ 50 lakhs in the return of income filed for AY 2013-14, therefore, the AO was erred in making further addition of ₹ 50 lakhs for the year under consideration only on the basis of search statement. The Ld.CIT(A), after considering relevant submissions of the assessee and also taking into account statement recorded during the course of search observed that incrimina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax Act, 1961. The assessee has admitted undisclosed income of ₹ 50 lakhs for AY 2012-13. Although, the assessee has admitted undisclosed income for AY 2012-13, failed to disclose such income in the return of income; however, disclosed the same in the assessment year 2013-14. According to the assessee, it has admitted undisclosed income for AY 2012-13 by mistaken understanding of facts, whereas the said income, in fact, pertains to AY 2013-14. The AO has made addition only on the basis of statement recorded during the course of search ignoring the fact that the assessee has admitted such undisclosed income for AY 2013-14. The disclosure of undisclosed income for AY 2013-14 has not been disputed by the AO. The AO has made addition on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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