M/S. GLOBAL STAR INDMETAL PRIVATE LIMITED ,UDUPI vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1, MANGALORE

ITA 51/BANG/2024Status: DisposedITAT Bangalore30 April 2025AY 2015-16Bench: SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER SHRI. KESHAV DUBEY (Judicial Member)11 pages
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What did the Tribunal hold?

The Tribunal held that additions based on uncorroborated loose slips found during search/survey actions, without cogent incriminating material, are not sustainable. The retracted admission of the Managing Director also lacked evidentiary value.

What were the facts?

The assessee's assessment was reopened based on materials impounded during a survey, which indicated cash sales of scrap. The Managing Director initially admitted to these unaccounted receipts but later retracted his statement.

What were the issues?

Whether additions can be made solely based on uncorroborated loose papers and a retracted admission, and the evidentiary value of such materials.

Which sections of the Income-tax Act were involved?

Section 147,Section 132(4),Section 34

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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE

Before: SHRI LAXMI PRASAD SAHUSHRI. KESHAV DUBEY

For Appellant: Smt. Sheetal Borker, Advocate
For Respondent: Shri Subramanian S, JCIT(DR)(ITAT), Bengaluru
Hearing: 23.04.2025Pronounced: 30.04.2025

Per Laxmi Prasad Sahu, Accountant Member These two appeals by assessee are against the order of ld. CIT(A)-II Panaji dated 22.11.2023 with regard to addition of Rs.15 lakhs in the AY 2015-16 & Rs.40 lakhs in the AY 2016-17. Since the issue in these appeals is common and hence these are clubbed together heard together and disposed of by this common order for the sake of convenience.

2.

The first common ground in these appeals is with regard to reopening of assessment u/s 147 of the Income Tax Act, 1961 (in short “The Act”).

ITA Nos.51, 52/Bang/2024 3. Next ground is with regard to addition of Rs.40 lakhs. Facts of the case are

The order continues below.

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