- (1.) This order shall dispose of two appeals bearing ITA Nos. 396 and 407 of 2015 as according to learned counsel for the appellant, the issue involved therein is identical. For brevity, the facts are being extracted from ITA No. 396 of 2015.
(2.) This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 17.9.2014 (Annexure A-10) passed by the Income Tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal") in ITA No. 781/CHD/2009 for the assessment year 2006-07 claiming the following substantial questions of law:- I. Whether under the facts and circumstances of the case, the Tribunal order is sustainable, whereby the inferences drawn relying on the uncorroborated and unilateral statement recorded during survey u/s 133A, can it form the only basis for bringing to 'charge' (u/s 5) the amount as 'income' II. Whether under the facts and circumstances of the case, there is abuse and mis-utilization of the powers and jurisdiction u/s 133A(3)(iii) r.w. 132(4) Section 292C [inserted by Finance Act, 2007 w.e.f. 01.10.1975] and provisions of Section 164 of Cr.P.C. and in pursuance to CBDT Instruction No. 286/2/2003-IT(Inv.) dated 10.3.2003 while obtaining the statement and the subsequent utilization thereof while arriving at the chargeable income to tax III. Whether under the facts and circumstances of the case on examination of the provisions u/s 29, 44AA, 44AB, 139(1), 145 of the Income Tax Act, 1961, the chargeable income is sustainable on the basis of the statement recorded in survey which is contradictory to the records of the return of income accepted by the respondent department
(3.) A few facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee is a partnership firm and is engaged in the business of manufacturing and selling of agricultural implements. The method of accounting is mercantile whereby the financial statements are being compiled on the basis of cash book, ledger as required under Section 44AA of the Act which is supported with vouchers and necessary evidences to substantiate the same. A survey under Section 133A of the Act was conducted on 27.9.2005 at the business premises of the assessee and the statements of Shri Gurvinder Singh and Shri Gurdev Singh (partner), Annexure A-1, was recorded. A retraction letter dated 6.1.2006 (Annexure A-2) was addressed to the Assessing Officer, i.e., Income Tax Officer, Sangrur, prior to the commencement of the assessment proceedings. In pursuance to the initiation of the assessment proceedings, the assessee filed return of income on 31.10.2006 declaring nil income and subsequently on 27.7.2007 a notice under Section 143(2) of the Act was issued to the assessee. The Assessing Officer vide order dated 31.10.2008 (Annexure A-3) framed the assessment under Section 144 of the Act and made various additions amounting to Rs. 28,89,527/-. Feeling aggrieved, the assessee filed an appeal on 20.11.2008 (Annexure P-4) before the Commissioner of Income Tax (Appeals) [for brevity "the CIT (A)"]. The assessee filed written pleadings dated 10.12.2008 (Annexure A-5). The CIT(A) vide order dated 29.6.2009 (Annexure A-7) upheld the order of the Assessing Officer and dismissed the appeal. The assessee assailed the order, Annexure A-7, before the Tribunal by way of an appeal on 23.7.2009 (Annexure A-8). The assessee also filed written submissions dated 7.8.2014 (Annexure A-9) before the Tribunal. The Tribunal vide order dated 17.9.2014 (Annexure A-10) affirmed the findings of the CIT(A) and dismissed the appeal which gave rise to the assessee to approach this Court by way of instant appeal.;