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Issues: Appeal against CIT(A) order restricting addition to income from undisclosed sources.
Analysis: 1. Background: The appeal filed by the revenue challenges the CIT(A) order for Assessment Year 1991-92, specifically regarding the addition to income from undisclosed sources. 2. Facts: The assessee, a partnership firm, faced search operations resulting in the seizure of documents and records. Initially, a partner admitted unaccounted receipts of Rs. 5,00,000, but later retracted the statement. The Assessing Officer added Rs. 4,62,885 as income from undisclosed sources, considering the incomplete books and blank vouchers indicating inflated expenses. 3. CIT(A) Decision: The CIT(A) held that the initial statement cannot be relied upon, sustaining the addition only to Rs. 50,000. The revenue appealed this decision. 4. Revenue's Argument: The revenue contended that the partner's sworn statement under section 132(4) is a valid basis for assessment, citing legal precedents supporting the admissibility of such admissions. 5. Assessee's Defense: The assessee argued that the retracted statement should not be the sole basis for assessment, emphasizing the need for independent evidence to corroborate such confessions. 6. Tribunal Decision: After careful consideration, the Tribunal upheld the Assessing Officer's addition of Rs. 4,62,885. It found substantial evidence in seized documents supporting the admission of suppressed receipts and inflated expenses. The retraction was deemed insufficient, as the initial admission was corroborated and not refuted adequately by the assessee. 7. Conclusion: The Tribunal allowed the revenue's appeal, restoring the Assessing Officer's order regarding the estimate of income from undisclosed sources. The onus to refute the initial admission was not met by the assessee, leading to the decision in favor of the revenue. 8. Outcome: The revenue's appeal was allowed, and the original assessment order was reinstated.
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