2015 (11) TMI 1804 - HC - Income Tax

Disclosure of undisclosed income u/s 132(4) - whether disclosures made voluntarily and without any element of coercion could not be retracted without cogent evidence - HELD THAT - For the reasons stated in the order 2015 (11) TMI 23 - GUJARAT HIGH COURT it is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to any question of law much less a substantial question of law so as to warrant interference.

Summary

Issues:
1. Challenge to the order of the Income Tax Appellate Tribunal under section 260A of the Income Tax Act, 1961.
2. Deletion of addition without appreciating full facts by the Appellate Tribunal.
3. Retraction of disclosure of undisclosed income under section 132(4) of the Act without cogent evidence.

Analysis:
1. The appellant, the revenue, challenged the order of the Income Tax Appellate Tribunal dated 19th March, 2015, in relation to the assessment year 2006-07. The appellant proposed two questions for consideration. The first question pertained to the Tribunal allegedly erring in law by deleting the addition without fully appreciating the facts dealt with by the Assessing Officer, leading to a perceived perversity in the Tribunal's order. The second question raised whether the Tribunal erred in not recognizing that the voluntary disclosure of undisclosed income under section 132(4) could not be retracted without substantial evidence.

2. During the hearing, it was acknowledged that the questions in this case were akin to those in Tax Appeal No.610/2015. In a previous order dated 6th October, 2015, in the case of Principal Commissioner of Income-Tax v. M/s. Kunvarji Finance Private Limited, the proposed question [B] was rejected. As proposed question [A] was interlinked with proposed question [B], and considering the reasoning provided in the previous order, it was concluded that the impugned order by the Tribunal did not exhibit any legal flaw necessitating intervention. Consequently, the appeal was dismissed summarily.

This detailed analysis elucidates the issues raised in the legal judgment, the arguments presented by the parties, and the ultimate decision rendered by the High Court, thereby providing a comprehensive understanding of the case.