COMMISSIONER OF INCOME TAX Vs. DIGAMBAR KUMAR JAIN

JUDGEMENT

(1.) THIS appeal is directed against an order dated 13/06/2012 passed by Income Tax Appellate Tribunal, Jabalpur Bench, Jabalpur, in ITA No. 114/Jab/2010 Assessment Year 2007 -08, by which the Tribunal has confirmed the order passed by the Commissioner of Income Tax (Appeal) dated 08/07/2012. Both the authorities have found that the Assessing Officer erred in making the addition of Rs.40 lakhs as the additional income of the appellant without any material, merely on the basis of statement recorded during survey under Section 133A of the Income Tax Act.

(2.) THE learned counsel for the appellant submits that it was burden on the assessee to prove that the statement recorded by the Income Tax Officer, during the survey, was not correct. Both the authorities have erred in treating the statement under Section 133A of the Income Tax Act, as incorrect, in absence of any corroboration by documentary evidence. It was submitted that this appeal may be admitted on the substantial questions of law as framed in the memo of appeal.

(3.) THE facts of the case are that a survey under Section 133A of the Income Tax Act, was conducted in the premises of the respondent -HUF on 20/09/2006. The respondent is a manufacturer and trader of umbrellas. During survey, certain documents were found which were impounded. A statement of Shri Digambar Kumar Jain, the Karta of the assessee was recorded in which he had admitted that there were certain discrepancies in the impounded documents and he had surrendered for taxation an amount of Rs.40 lakhs to cover possible anomaly. During the assessment proceedings, he had refuted the surrendered on the ground that there was no undisclosed income. The Assessing Officer on the basis of statement found that the assessee was liable for further addition of Rs.40 lakhs and assessed the respondent accordingly.