UMESH RAMESH PATIL,MUMBAI vs. COMMISSIONER OF INCOME TAX (APPEALS), MUMBAI

The Ld. officer erred in not allowing the standard deduction claimed by the appellant towards the Income from House Property - Interest charged for Repayment of Housing Loan u/s 24B and Deduction under section 80C.

The learned Assessing officer failed to consider the fact that the 2. The learned Assessing officer failed to consider the fact that the 2. The learned Assessing officer failed to consider the fact that the income offered by the appellant during the course of survey is not income offered by the appellant during the course of survey is not income offered by the appellant during the course of survey is not conclusive and final. The appellant is no conclusive and final. The appellant is not from a financial t from a financial background and not conversant with the laws to compute the income background and not conversant with the laws to compute the income background and not conversant with the laws to compute the income to be offered exactly. to be offered exactly. 3. The learned Assessing officer failed to consider the judgement of 3. The learned Assessing officer failed to consider the judgement of 3. The learned Assessing officer failed to consider the judgement of the Hon'ble Supreme Court in the case of CIT Vs. S. Kader Khan Son the Hon'ble Supreme Court in the case of CIT Vs. S. Kader Khan Son the Hon'ble Supreme Court in the case of CIT Vs. S. Kader Khan Son 352 ITR 480 (SC) wherein it was held that "the statement recorded (SC) wherein it was held that "the statement recorded (SC) wherein it was held that "the statement recorded during survey has no during survey has no evidentiary value". Hence the addition made evidentiary value". Hence the addition made by the Assessing officer based on the Sworn statement recorded by the Assessing officer based on the Sworn statement recorded by the Assessing officer based on the Sworn statement recorded during survey is not tenable in law. during survey is not tenable in law. 4. The learned Assessing officer fail 4. The learned Assessing officer failed to consider the Circular issued ed to consider the Circular issued by CBDT vide CBDT Letter F.No. 286/2/2003 by CBDT vide CBDT Letter F.No. 286/2/2003 - IT(Inv) dt 10.03.2003 IT(Inv) dt 10.03.2003 wherein it is stated that "I am further directed to invite your attention wherein it is stated that "I am further directed to invite your attention wherein it is stated that "I am further directed to invite your attention to the Instructions / Guidelines issued by CBDT from time to time, as to the Instructions / Guidelines issued by CBDT from time to time, as to the Instructions / Guidelines issued by CBDT from time to time, as referred above, through which the Board has emphasized upon the ove, through which the Board has emphasized upon the ove, through which the Board has emphasized upon the need to focus on gathering evidences during Search/Survey and to need to focus on gathering evidences during Search/Survey and to need to focus on gathering evidences during Search/Survey and to strictly avoid obtaining admission of undisclosed income under strictly avoid obtaining admission of undisclosed income under strictly avoid obtaining admission of undisclosed income under coercion/undue influence. In view of the above, coercion/undue influence. In view of the above, while reiterating the while reiterating the aforesaid guidelines of the Board, I am directed to convey that any said guidelines of the Board, I am directed to convey that any said guidelines of the Board, I am directed to convey that any instance of undue influence/coercion in the recording of the instance of undue influence/coercion in the recording of the instance of undue influence/coercion in the recording of the statement during Search/Survey/Other proceeding under the IT. Act, statement during Search/Survey/Other proceeding under the IT. Act, statement during Search/Survey/Other proceeding under the IT. Act, 1961 and/or recording a disclosure of undisclosed income under 1961 and/or recording a disclosure of undisclosed income under 1961 and/or recording a disclosure of undisclosed income under undue pressure/coercion shall be viewed by the Board adversely." due pressure/coercion shall be viewed by the Board adversely." due pressure/coercion shall be viewed by the Board adversely." Hence the addition made by the Hence the addition made by the Assessing officer based on the Assessing officer based on the sworn statement during survey is not as per the sworn statement during survey is not as per the 5. On the facts and in the circumstances of the case and in law, the 5. On the facts and in the circumstances of the case and in law, the 5. On the facts and in the circumstances of the case and in law, the Ld. Officerhas been imposing tax @ 60% under 115BBE which is been imposing tax @ 60% under 115BBE which is unsustainable and the Assessee has declared all the income in the unsustainable and the Assessee has declared all the income in the unsustainable and the Assessee has declared all the income in the Income Tax Return of the respective period after claiming the Income Tax Return of the respective period after claiming the Income Tax Return of the respective period after claiming the standard deduction allowable as per Income Tax Act, standard deduction allowable as per Income Tax Act, 1961. 2. At the outset, the L At the outset, the Ld. Counsel for the assessee submitted that d. Counsel for the assessee submitted that the Ld. CIT(A) has dismissed the a the Ld. CIT(A) has dismissed the appeal of the assessee ppeal of the assessee in-limine for non-payment of part of part of self-assessment tax. The Ld. Counsel assessment tax. The Ld. Counsel submitted that assessee has now paid the balance self-assessment submitted that assessee has now paid the balance self submitted that assessee has now paid the balance self tax and requested that appeal may be restored back to the Ld. that appeal may be restored back to the Ld. that appeal may be restored back to the Ld. CIT(A) for deciding afresh on merit. The Ld. Departmental CIT(A) for deciding afresh on merit. The Ld. Departmental CIT(A) for deciding afresh on merit. The Ld. Departmental Representative (DR) did not object seriously. Representative (DR) did not object seriously.

We have heard rival submission of the parties on the issue in We have heard rival submission of the parties on the issue in We have heard rival submission of the parties on the issue in dispute and perused the relevant material dispute and perused the relevant material on record. Out of the on record. Out of the returned tax liability of Rs.66,84,053/ ax liability of Rs.66,84,053/-, the assessee paid only he assessee paid only amount of Rs.15,27,000/ amount of Rs.15,27,000/- at the time of filing of return of income at the time of filing of return of income and the remaining self and the remaining self-assessment tax of Rs.51,57,050/ assessment tax of Rs.51,57,050/- was not paid till the date of the filing of th paid till the date of the filing of the appeal before the Ld. CIT(A) e appeal before the Ld. CIT(A) ,therefore, the Ld. CIT(A) following the decision of the Hon’ble therefore, the Ld. CIT(A) following the decision of the Hon’ble therefore, the Ld. CIT(A) following the decision of the Hon’ble Karnataka High Court in the case of D. Komalakshi v. DCIT 291 ITR Karnataka High Court in the case of D. Komalakshi v. DCIT 291 ITR Karnataka High Court in the case of D. Komalakshi v. DCIT 291 ITR 99 (Karnataka HC) and decision of the Hon’ble Bombay High Court 99 (Karnataka HC) and decision of the Hon’ble Bombay High Court 99 (Karnataka HC) and decision of the Hon’ble Bombay High Court in the case of CIT v. Manoj Ku in the case of CIT v. Manoj Kumar Beriwal 316 ITR 218 (Bom) mar Beriwal 316 ITR 218 (Bom) dismissed the appeal of the assessee dismissed the appeal of the assessee in-limine observing as under: observing as under:

In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.