Commissioner Of Income Tax – 9 v. M/S. Jay Precision Products P. Ltd

K IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.5285 OF 2010 Commissioner of Income Tax – 9.. Appellant Vs.M/s. Jay Precision Products P. Ltd. .. Respondent. Mr. Suresh Kumar a/w Ms. Suchitra Kamble for the Appellant.Mr. J.D. Mistri, Senior advocate a/w Mr. A.K. Jasani for Respondent. CORAM: J.P. DEVADHAR & K.K. TATED, JJ.DATE: 12TH SEPTEMBER, 2011. P.C. Whether the ITAT was justified in deleting the addition of Rs.50,00,000/- made by the Assessing Officer based on the statement of the Director of the Assessee Company recorded under section 131 of the Income Tax Act, 1961 is the question raised in this Appeal. 2The Assessment Year involved herein is A.Y. 2004-2005. 3In the present case, survey action under section 133A of the Income Tax Act, 1961 was conducted on 6[th] November, 2003. During the course of Survey, a Director of the Assessee namely, Mr. Xerxes K. Rao was summoned to the office of the Assessing Officer wherein his statement under section 131 of the Income Tax Act, 1961 was recorded. On the basis of the statement made by the said Director, addition of Rs. 50,00,000/- was made in the hands of the Assessee in the Assessment Year in question. 4On Appeal filed by the Assessee, the CIT (A) deleted the addition on the ground that the Assessee has retracted the statement recorded on 6[th ]November, 2003 and that there is no independent evidence to corroborate the addition of Rs.50,00,000/- made by the Assessing Officer. The ITAT has upheld the order passed by the CIT (A). Hence, the Revenue has filed the present Appeal. 5Mr. Suresh Kumar, learned counsel appearing on behalf of the Revenue submitted that in the present case, the Assessee apart from admitting his liability, had in fact paid advance tax on the said amount of Rs.50,00,000/-. In these circumstances, the Assessing Officer was justified in making the addition of Rs. 50,00,000/-. 6The finding of fact recorded by the CIT (A) as also the ITAT is that the particulars relating to the amount of Rs.50,00,000/- were already recorded in the books of the account as the same were retrieved by the Assessing Officer from the computer of the Assessee during the course of Survey. Thus, the amount of Rs.50,00,000/- were duly recorded in the books maintained by the Assessee and they have accepted the argument of the Assessee that the statement made by the Director and the Advance tax paid by the Assessee were under duress. In these circumstances, deletion of the addition of Rs.50,00,000/- by the ITAT cannot be faulted. In the result, we see no reason to entertain the present Appeal and the same is dismissed with no order as to costs. (J.P. DEVADHAR, J.) (K.K. TATED, J.)