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1.2 The Authorized officer during the post survey proceedings, once again sought his clarification on loose papers/documents impounded during survey. In the statements recorded on 06.03.2018, the assessee in reply to Q.No.3, specifically stated that at the time of survey, he was under mental stress and did not understand the meaning of surrender of income and the surrender was made without properly perusing the impounded documents and understanding their implication. He also stated that he would work out the actual income, in consultation with his Accountant and CA, once copies of impounded documents are made available to him and would accordingly file the ITR and pay the due taxes and the tax paid post survey may be deemed to be advance tax for the year.

1.4 As stated supra, the surrender was made by the assessee under coercion and pressure of the Department. It may be mentioned that the assessee is not very educated (8 th pass only) He had no idea of the word SURRENDER. It is submitted that the assessee was asked to call the persons named in the diaries/loose papers to prove the genuineness of the entries recorded therein, at the time of recording of the statement or else to surrender. It was impossible for him to explain the genuineness of credit of more than 1,500 entries instantly during the course of recording of the statement. Therefore, the assessee stated that he was unable to explain the genuineness of all the entries immediately and ultimately he was forced to make the surrender. After the survey, when the assessee contacted his CA and told him that the survey team had shown him the figures noted in the diaries and the loose papers and totaled them and made him to surrender the aggregate of these figures as his income, the CA advised him to first obtain the copies of all the papers impounded during survey and to calculate the income comprised there in. Therefore, accordingly the surrender was retracted during the statement recorded on 06.03.2018 and was not offered as income in the ITR filed. After getting the copies of impounded documents, page wise list of the same was prepared, giving the description of each page, the relevant assessment year and whether the amount written in it comprised income/receipts. Finally, after reconciliation of all the papers, the income comprised in the impounded diaries/loose papers was offered to tax as additional income.

1.13 He has further referred to certain loose papers (Page-1,6 & 11of Exhibit-1) and has finally held - Thus, considering overall discrepancies in books of accounts and unaccounted transactions recorded in loose papers, addition of Rs. 1,25,00,000/- is made in total income of the assessee.

1.14 From the above observations, it is absolutely clear that the basis of addition is the surrender made by the assessee in his statements rather than the evidences gathered by the Department during survey. During the course of assessment, detailed explanation as to each and every page of the impounded documents was provided (which is again being provided as attachment) and reconciliation of the same with the regular books of accounts was made. The books were duly examined by the AO and each and every entry was explained to his satisfaction. Again, during the appellate proceedings, detailed explanation on each of the impounded papers was provided as is evident from the online submissions made, the copies of which are part of the paper book. But ignoring all these evidences, the Ld.CIT(A) sustained the addition to the extent of Rs.1,25,00,000/-

1.22 In Para-6.14, the Ld.CIT(A) has stated "the statement recorded during survey proceeding along with incriminating material is very much strong evidence in eye of law". In Para- 6.12, he has tabulated all the figures mentioned in the impounded diaries/loose sheets and added them up. It would be pertinent to mention that the figures in the impounded documents, as a matter of fact, comprise of unrecorded sales, Purchase bills duly recorded in books, loans advanced during different financial years, cheques obtained as security against loans and sales, etc. Finally, he has further tried to show that the unaccounted income (worked out by him) aggregates to Rs.1,52,59,930/- which is the sum total of all figures mentioned in the impounded documents. The main basis of the CIT(A) in confirming the addition is the statements recorded during survey. CIT(A)'s blind endorsement of AO's action breaches Sec. 250(6) compliance.