2008 (3) TMI 4 - HC - Income Tax

Search Sec. 158BC discloser of undisclosed income wrongly of family income and other group concern as his income Assessee has surrendered income earlier to buy peace and avoid litigation there is no scope of retracting the statement latter No question of law arise, appeal dismissed.

Summary

Issues:
Challenge to impugned order by Assessee under Section 260A of the Income Tax Act, 1961 regarding block assessment period from 1st April, 1990 to 10th August, 2000.

Analysis:
The case involved an appeal filed by the Assessee under Section 260A of the Income Tax Act, 1961 challenging the order passed by the Income Tax Appellate Tribunal (ITAT) regarding a block assessment period. The search conducted at the Assessee's premises led to the declaration of undisclosed income, which was subsequently revised by the Assessee. The Assessing Officer made additions based on seized documents, which were then modified by the Commissioner of Income Tax (Appeals). Both parties filed cross-appeals resulting in partial allowance for the Assessee and dismissal for the Revenue.

The Assessee contended that the Tribunal cannot decide on the treatment of sums in seized documents without determining their validity first. The Assessee had made a conditional offer during assessment, surrendering a specific amount after considering the seized documents. The Assessee later attempted to retract the statement, which was deemed unacceptable as the entries were admitted to be in the Assessee's writing and some transactions were acknowledged as real. The court emphasized that a document must be accepted or rejected in its entirety, and partial acceptance is not permissible.

The Assessee's declaration of unaccounted income and subsequent attempt to withdraw the statement were scrutinized. The court upheld the findings of the statutory authorities that the Assessee surrendered the amount after due consideration, and there was no basis for withdrawal. The Tribunal's order was deemed valid, and no substantial question of law arose from the case falling within the scope of Section 260-A of the Act. Consequently, the Assessee's appeal was dismissed.

In conclusion, the judgment upheld the Tribunal's decision regarding the Assessee's undisclosed income declaration and subsequent attempt to retract the statement. The court found no legal infirmity in the Tribunal's order, leading to the dismissal of the Assessee's appeal under Section 260A of the Income Tax Act, 1961.