Sheetal Collection Vs DCIT (ITAT Pune)
In the case of Sheetal Collection vs DCIT, ITAT Pune addressed whether a separate written retraction is necessary for statements made under Section 133A of the Income-tax Act. The case involved a partnership firm that, during a survey under Section 133A, admitted undisclosed income totaling ₹8,00,000 to cover potential errors. Despite this admission, the firm did not include the amount in its tax return. The AO added the amount to the firm’s income, which was upheld by the CIT(A). ITAT Pune overturned this decision, stating that no separate written retraction is required for admissions made under Section 133A, which is not taken under oath and thus lacks binding force without corroborative evidence. The tribunal ruled that the addition based solely on the statement recorded under Section 133A, without supporting evidence, was unjustified. Hence, the appeal was allowed, and the additional income was removed from the assessment.
FULL TEXT OF THE ORDER OF ITAT PUNE
Against DIN & Order No. ITBA/APL/S/250/2023-24/1063185555(1) dt. 22/03/2024 passed u/s 250 of the Income-tax Act, 1961 [‘the Act’ hereinafter] passed by the Commissioner of Income Tax Appeal-11 Pune [‘CIT(A)’ hereinafter] which in turn arisen out of order of assessment passed u/s 143(3) of the Act by the Dy. Commissioner of Income Tax, Circle-2, Jalgaon [‘AO’ hereinafter] anent to assessment year 2014-15 [‘AY’ hereinafter] the assessee is in appeal.
