Case Law Details
Smt. Rontala Tirumala Vs ACIT (ITAT Hyderabad)
ITAT finds that the statement of the M.D Shri Rontala Raji Reddy was recorded on 17.10.2014 i.e. a day after the survey on 16.10.2014 and the diaries impounded during the course of survey allegedly corroborated the statement. It is a settled position that no addition can be made solely on the basis of a statement given during the course of search or survey. In this case ITTA find that though the assessees did not retract the statement of Sri Raji Reddy by filing any letter before the Revenue Authorities, I find that they have complained to the CBI and the CBI has impounded the material from the Department, which contained not only the small diaries but also some other documents, such as the original copies of the cheques allegedly issued by the directors under duress. Though the CBI proceedings are still pending, a doubt about the survey proceeding arises. Further, diaries on which the Assessing Officer has relied upon, do not contain any details other than the names of the loanees to whom the advances are allegedly given by the individual directors of the company. Further, the names of the assessees are allegedly written in short form. Therefore, it is not possible to identify the loanees or verify the transactions. Further, the complaint given by the individual directors to the CBI also throws a doubt about the voluntariness of the statement given by the Managing director.
In view of the same, ITAT inclined to accept the contention of the learned Counsel for the assessees that the documents on the basis of which, the additions are made by the Assessing Officer are nothing but dumb documents and the additions made on the basis of such documents cannot be sustained. In view of the same, the additions made by the Assessing Officer in the hands of all the assessees are deleted. The assessees appeals are accordingly allowed.
FULL TEXT OF THE ITAT JUDGEMENT
All are the appeals of the respective assessees for the A.Y 2014-15 against the individual orders of the CIT (A)-12, Hyderabad, dated 7.2.2020.
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