ZAFARULLA I MALEK SEVALIA Vs. DY. CIT

JUDGEMENT

(1.) ASSESSEE is in appeal against the judgment of the Income Tax Appellate Tribunal dt. 21 -9 -2012 raising following questions for our consideration:

(2.) ISSUE pertains to addition of sum of Rs. 20 lakh as undisclosed income of the assessee. Brief facts are that sometime in the month of March, 2005 when the employees of the assessee firm were travelling on a scooter carrying on cash of Rs. 20 lakhs, they were robbed. An FIR to this effect was lodged before the concerned police station. Revenue authorities were intimated about the occurrence. Search action was initiated and two statements of the assessee were recorded under section 133A of the Income Tax Act, 1961 on 1 -4 -2005. In such statements, the assessee disclosed additional income of Rs. 50 lakhs. In particular, with respect to cash of Rs. 20 lakh, the assessee agreed that same represented assessees unaccounted money. Additional income of Rs. 30 lakhs was admitted on the basis of other loose paper and documents found at the time of survey. We are concerned with this disputed sum of Rs. 20 lakh with respect to which assessee contends that there was no material other than bare statement of the assessee recorded under section 133A of the Act. The stand of the assessee is that such statement itself cannot form basis of any additions and that therefore, Revenue authorities as well as Tribunal erred in making such additions.

(3.) HAVING heard learned counsel Shri Hemani for the appellant who raised above contentions before us, we notice that the Tribunal has in the impugned order confirmed additions making following observations: